There is a GST impact of almost 525 basis points that gets impacted on the company's sales, therefore the number might be a little lower that what a double digit would be
Sources said that the GST Fitment Committee has approved new rate structure of over two dozen items and forwarded the proposal to the apex decision making body.
In a course correction bid, many restaurants have slashed menu prices by 5-10% to bring them at par with pre-GST rates. But they still await footfall to normalize.
Earlier basmati rice was subject to value-added-tax (VAT) or was tax free in different states. However under GST, basmati rice has been included in the category of branded cereals registered in the Register of Trade Marks, that attract a levy of 5% GST.
However, some of the items and services required for making prasadam would be subject to GST, including sugar, vegetable edible oils, ghee, butter, service for transportation of these goods and so on.
The company has brought uniform price by slashing price in southern states where pre-GST taxes were high and by hiking rates in states like Maharashtra.