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Subway, Pizza Hut, KFC 'not passing on' GST rate cut benefits to customers

After Domino's Pizza, three other popular quick service restaurants - Subway, Pizza Hut and Kentucky Fried Chicken (KFC) have come under the scanner of the National Anti-Profiteering Authority (NAA) for allegedly not passing on GST rate cut benefits to consumers. The agency has questioned their practice of passing tax cuts only on select products and not across the board, the ET reported.  GST Council had cut tax rates for all restaurants in November 2017, from 18% to 5%. However the benefit of GST input credit was also withdrawn. Restaurant chains have defended the move claiming that ITC withdrawal impacted their profitability by 10-18% and limited their capacity to make price cuts. Prior to reduction, GST was 18% for air-conditioned (AC) restaurants and 12% for non-AC restaurants.

Read More at Business Today News date : 14 Aug 2018, Tuesday

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