Please Read Clarification at the end of Article by Mcdonald in respect of Below Story.
Nowadays Social media is abuzz with a Photo showing two bills of Mcdonald’s Family Restaurant in which Price inclusive of Tax of one of the item sold by it is shown as same on 15th November 2017 i.e. the date on which GST on Restaurants been reduced to 5% from earlier 18% and on the date prior to reduction in GST Rate. As per the image Mcdonald has adjusted the price of item in such a way that benefit of GST is not been passed to the Customer. We are reproducing below the copy of bill issued by MCdonald as circulating on Social Media. Please note we have not verified the genuineness of these bills so we can not comment on genuineness of these bills.
BJP MP Kirit Samaiya has taken a note of the same and twitted on his twitter handle that he Met Senior Officials at Delhi of Finance Ministry & Consumer Ministry requested GOI to ask/take action against Restaurants not passing on benefits of GST reduction of 18% to 5% to Consumers. He also Submitted proof of MacDonald & Starbucks.
We are reproducing below the Text of letter written by him:-
Dr. Kirit Somaiya, MP. Chartered Accountant, Ph.D
Dated: 16 November 2017
Sub: Passing of GST benefits to the ultimate customers — reduction of GST for food in restaurants.
We once again thanks the Government for reducing 18%/12% GST to 5% on the food items at restaurants.
Request to please check and take appropriate steps so that the ultimate benefit of reduction of GST may be passed on to the customers.
(Dr. Kirit Somaiya)
Shri Arun Jaitely
Hon’ble Minster of Finance
Government of India
Clarification mailed to us by Harcastle Restaurants Pvt Ltd (Mcdonald Group)
GST for restaurants has come down from 18% to 5%, but Input Tax Credit has been withdrawn. Due to this, our operating costs have gone up by 10-12%.
After taking this cost into account, the effective tax benefit would have been less than a percent. As a result, the prices of most of our products would have come down very marginally and this would not have made much difference to our customers.
We have taken the BOLD move of a BIG reduction in the prices of some of our flagship products including
We have delighted our customers by reducing our prices by Rs 40-50.
Like, the Maharaja Mac that was earlier priced at Rs 191 has been brought down to Rs 149, making the burger more affordable to all our customers.
We have always been open about our prices. Our menu board prices are inclusive of taxes. So, “What You See Is What You Pay”.