Shocking! Cake shops find a plan to bolt GST? Your neighbourhood pastry shop may turn into a restaurant soon; Know how and why
According to the revenue department if the shopkeeper starts the restaurant in the same premises then they will get 7-13% of tax arbitrage. Currently, the shopkeepers pay 12% and pastries/cakes are taxed at 18%. Whereas the GST rate for restaurants is 5%.
According to the revenue department if the shopkeeper starts the restaurant in the same premises then they will get 7-13% of tax arbitrage, Image source: Reuters