Restaurants to be shut down in Bengaluru city against new tax

BENGALURU: If your work place does not have its own canteen, then carry your own food today. Restaurants will be shut in the city on Tuesday to protest against the proposed tax on them under the Goods and Services Tax (GST).

There are around 3,000 restaurants in the city. However, roadside eateries and pushcarts will be open on Tuesday. Several food startups who run their own kitchens may remain open to deliver food at your doorstep.

Bruhat Bengaluru Hoteliers Association treasurer Virendra Kamath  said that restaurants in the state are currently levied four percent Composition of Tax (COT). Under the GST, the tax will be 12% for non-air conditioned restaurants and 18% for air-conditioned ones.

“Until now, we have not been burdening customers with COT. However, the GST will push restaurants to pass the burden of this tax on to customers”, he said. Another concern of hoteliers is that they come under higher tax brackets than sweets shops which will be levied a much lower 5 per cent under the GST. 

“Sweets are not for daily consumption. Food is a necessity. We have been representing our concerns to the government for the past six months. It has not yielded any results”, Kamath said. The protest is called only in Bengaluru, but restaurants in Bellary, Chikkaballapur and Tumakuru have also decided to shut shops on Tuesday. 

Karnataka Hotel Owners Association president M Rajendra said, “The Karnataka Pradesh Hotels and Restaurants Association has members all over the state. This bandh has been called only in Bengaluru and not in other 30 districts. But we do oppose tax under the GST.”