Following the decision by the GST (Goods and Services Tax) council to cut the tax rates of restaurants to 5% from the earlier 12% (Non-AC restaurants) and 18% (AC restaurants), customers hoped that the restaurant bills would get cheaper. However, reports suggest that after the 5% tax rate came into effect on Wednesday, Starbucks, McDonald’s and Domino’s Pizza have already hiked their base price. McDonald’s India clarified in a tweet that the prices had gone up due to the removal of input tax credit.
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