About 300 restaurants and over 1000 bakeries in Coimbatore district will down shutters for a day on May 30 seeking 5% GST. The rate fixed now is 12 % for non-AC hotels and 18 % for AC hotels if the annual turnover is more than ₹ 50 lakh.
The rate that is fixed will push up the cost of food for the common man, said the president of the Coimbatore District Hoteliers Association D. Srinivasan.
The hotel associations in the State had sought 5 % tax under GST. Earlier, small eateries were exempted from tax. But, only those hotels and eateries that have less than ₹20 lakh annual turnover have been exempted now. “A bakery with just ₹ 13,000 daily sales will be covered under GST. This will add the cost for those who have even just a cup of tea,” he said.
Eating out is common now and those who travels to other cities go to a hotel for food. Outdoor catering and parties in AC halls will also attract 18 % GST. About 200 commodities, including milk and vegetables, are exempted from GST. But, this will not benefit those eating out, he said.
Those in smaller cities will be affected the most.
Hotels in Kerala and Puducherry will also take part in the strike and the traders are expected to extend support, he said.
