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Subway, Yum restaurants under watch for failing to pass on GST rate cut benefits

Quick service restaurant (QSR) chains Subway and Yum Restaurants owned Pizza Hut and Kentucky Fried Chicken (KFC) have come under the scrutiny of the National Anti-Profiteering Authority (NAPA) for not passing on cuts in goods and services tax (GST) rates to consumers. The agency has questioned their practice of passing tax cuts on select products and not across the board. The GST Council cut rates on restaurants in November 2017 to 5% from 18% in the case of AC restaurants and 12% in the case of non AC ones. Many companies didn’t reduce prices consistently across menu as the GST cut came with a rollback of input tax credit. This impacted profitability and limited their capacity to make price cuts, they said. Both Subway and Yum Restaurants have extended their full cooperation to the concerned authorities.

Read More at The Economic Times News date : 12 Aug 2018, Sunday

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