Nearly 2,000 restaurants observed a shutdown in the city on Tuesday in protest against heavy GST rate proposed on them.
Some of the star hotels also expressed their solidarity with them by closing their restaurants for sometime. The shutdown was part of a strike called by the hoteliers’ associations in the entire South India.
Visakha Hotel Merchants’ Association secretary T. Janardhana Rao told The Hindu that the response was overwhelming. He said they would continue protests in some other forms to bring pressure on the government to change the taxation system.
As per earlier system, he said the State was charging 5% VAT on turnover below ₹1.40 crore. For AC restaurants service tax used to be extra. Now as per the new system it will be 5% for turnover below ₹50 lakh. For above ₹50 lakh turnover, it will be at 18%.
“Whatever tax is collected, it is passed on to the customers If more tax is imposed the customers will be forced to go to roadside eateries where zero tax is collected,” Mr. Rao stated.
