Starbucks also profiteering not passing benefits

Was any action taken on such offenders??

J.S.Dua - What is to be seen is whether the basic price of coffee was Rs.170.00 when GST was @ 18% or it was about Rs.148.00. if it was Rs.170.00 when GST was @ 18% and now also Rs.170.00 then there does not seem to be any issue. But if it was about Rs.148.00 when GST was 18% then it is a serious issue. Regarding Mr Umapathy remarks on input credit being withdrawn - I reproduce the mail sent to another circle with exactly the same issue in which the restaurant was charging Rs.114.43 plus GST @ 18% i.e. about Rs.135.00 and post reduction of GST to 5%, he enhanced the basic price from Rs.114.43 to about Rs.128.00 so as to retain total payable by client as Rs. 135.00 including GST OF 5%. To which were/are my following comments: Posted on Local circles on 19.11.17 - Actually, it is unfair to increase the basic prices by as much as the reduction in GST amount and thus charging the customers same amount at old and new GST rates. The rates should increase by the amount of input GST credit they were getting earlier. For example, if the cost of various raw materials IS/WAS Rs.50.00 for these two items and GST paid to suppliers was Rs.9.00 @ 18%; then they are supposed to add Rs.9.00 in basic price because they will not get input credit under new reduced GST rate of 5% total. Thus, the basic price of the two items should have been about Rs.123.00 (also assuming that there is no reduction in GST rates of the raw materials; otherwise this amount ought to be only Rs. 2.50 instead of Rs.9.00) and Rs.128.00 including GST of 5%. And if the GST on raw materials is also reduced to 5% then the basic price of invoice should be only Rs.117.00 (114.43+2.5) and with 5% GST it should be about Rs. 120.00 (117+5%). This basic amount of Rs.50.00 for raw materials, though arbitrary, is realistic (or rather high and should be of the order of say Rs.30.00 or so) in this kind of industry where other costs like space rentals,furniture,kitchen appliances,electricity,water,salaries and wages,housekeeping etc. are rather high and some of the ingredients must be supplied by vendors whose turnover is well below Rs.1 Cr, thus there is almost 0% (1%) tax on those purchased items by restaurants.This means that increase in basic price should be anywhere between Rs.1.00 to Rs.2.50 and not Rs.14 as has been done above.

Business is being done for profits but it does not mean by using unfair trade practices. Government enforcement agencies wouldn't take action and always remain silent when such issues are raised for the reason best known to every one. Mr Sudesh Rai has rightly said to share it with government through a group only like local circle.

Where is the question of reducing prices of menu ? Taxes are added at the end of the bills over and above the amount of the total bill. Hence the customer has to ensure before payment that the rate of GST applied does not exceed the rate stipulated by the government. We must fight against the high handedness of the restaurant/hotel owners.

Govt. has withdrawn input tax credit for restaurants/ food outlets etc., where 5% GST is applicable hence they are not reducing the prices.