Restaurants to close early on June 30 to avoid GST confusion

by Business | 28-06-2017 | 536 views

According to reports, restaurants and bars across India will close early on June 30 to avoid confusion with the Goods and Service Tax (GST) which is to be launched on July 1st. Restaurants which usually close at around 1:30 am will either shut early at 11:30 pm or take orders only till midnight , the reports added.

“There is a technical glitch. Systems will have to be rebooted for GST software to be effected, and this can happen when we open for business at 12 noon on Saturday. So orders placed after midnight cannot be loaded with GST”, said one of the restaurant managers.

Some of the restaurant owners reportedly said that they have upgraded their software to automatically calculate GST on food receipts after June 30, as they do not want to take the risk. “To adjust the new tax, we will have to remove existing taxes and then load GST to ensure patrons don’t face much hike. The net increase on the bill could be around 7%”, he said.

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