GST rates slashed but McDonald's not cheaper. Twitter calls for a boycott

Recently, GST rates were revised to a new uniform 5% tax rate, however, McDonald's bill remains unchanged and nobody is lovin' it.

The GST (Goods and Services Tax) council has brought down the tax rates for restaurants in a move set to make restaurant goers happy, except if you happen to be a frequent customer at McDonald’s. Recently, the tax rates were revised from the earlier 18% for air conditioned restaurants and 12% for non-air conditioned restaurants, to the new uniform 5%.

The revised GST rates came into effect on Wednesday. While people were hoping for a much lighter bill following the rate cut, McDonald’s has hiked its prices so customers end up paying near the same amount and they were not happy. Customers blasted McDonald’s on Twitter and even called for a boycott of the fast-food chain restaurant. People also tagged the Ministry of Finance and asked them to take required action against restaurants hiking their rates.

The price hike comes in as the revised GST no longer accommodates input tax credit, which would compensate for the tax paid on inputs in the final collective tax. In their defense, McDonald’s India replied to angry customers, stating that their costs have increased following the removal of input tax credit. Earlier, the GST came with tax benefits for food, rent and other items, which is now being separately charged after the rate cut.