After Finance Minister Arun Jaitley announced that GST rates on restaurants are going to be slashed down, consumers everywhere had breathed a sigh of relief.
However, it turns out food chains like McDonald's and Starbucks have tweaked their prices in a manner that the total bill is still remaining the same.
One of the customers took to Twitter to compare his bills before and after the change, the total amount still remains the same.
Many consumers are feeling cheated and they have taken to Twitter to express their dissatisfaction.
People joined the debate, expressing their displeasure.
People even tagged PMO and Arun Jaitley to bring it to their notice.
.@arunjaitley @askGST_GoI @PMOIndia @adhia03 Do we have any regulation to stop such malpractice? This is being done by big name. Don't know how many small one would be doing this unnoticed. Shame @McDonalds @mcdonaldsindia https://t.co/iTtei4fj3o— Nitin Kale 🇮🇳 (@imnitinkale) November 15, 2017
This is what the restaurants are doing. To keep the net impact same they are increasing the base price and reducing gst from 18 to 5% pic.twitter.com/yGLegiT6K0— Nita Kewalramani (@Nitzmatazz) November 15, 2017
@mcdonaldsindia have hiked up their prices and then taken 5% GST! So No difference in the Final Prices— Drishti (@drishti_raina3) November 15, 2017
There are discrepancies even in delivery charges, as pointed out by this user.
Following the row, McDonald's has issued a statement explaining their revised rates.
The Government has brought down GST from 18% to 5%, but there has been a removal of Input Tax Credit.[1/3]— McDonald's India (@mcdonaldsindia) November 15, 2017
Due to this, our operating costs have gone up. However, keeping customer convenience in mind [2/3]— McDonald's India (@mcdonaldsindia) November 15, 2017
we have structured the changes in such a manner that total amount paid by the customer remains the same. [3/3]— McDonald's India (@mcdonaldsindia) November 15, 2017
However, people were not convinced with this explanation.
So did u guys reduce the prices before levying 18% earlier when u availed input tax credit ? @askGST_GoI— Kaustubh (@K4USTU3H) November 15, 2017
Balant lies and deceit. They will never explain— Man of Times (@zurohit) November 16, 2017
That's the most lousiest explanation I have ever come across! Price to customer should reduce! Price it at 120 and pay 6 rupees tax (5% of 120) to government. Transaction value becomes 126.Instead you are raising price. Complete illogical— Amogh Chaphalkar (@chaphya) November 15, 2017
Stupid structure! Now if tomorrow GST is increased will you keep price to customer same? Your defence is weak— Amogh Chaphalkar (@chaphya) November 15, 2017
Please tell us how much you had reduced price post-GST when you were able to claim input tax credits?— RJ (@WowDoge007) November 16, 2017
We hope things get sorted out soon.