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.

By: News Desk |
November 16, 2017 7:56 pm

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.

Shame on you @mcdonaldsindia Not passing on GST benefit to customers should be a crime @FinMinIndia Please take action! pic.twitter.com/P9J4gWNxfX

— Amogh Chaphalkar (@chaphya) November 15, 2017

Mockery of #gst #boycottmcdonalds @McDonalds @PMOIndia @arunjaitley pic.twitter.com/QelHac6XdA

— Anand Bhaigade (@bhaigade007) November 15, 2017

@mcdonaldsindia Soo nice of you after GST slab down from 18% to 5% , Subsequently you increase mrp #iamlovinit @arunjaitley @ZeeNews @ndtv pic.twitter.com/lgm1vXkHhp

— arpit mohnot (@arpitmohnot) November 15, 2017

.@arunjaitley @askGST_GoI @PMOIndia @adhia03 Do we have any regulation to stop such malpractice? This is being done by big name. Don’t know how many small one would be doing this unnoticed. Shame @McDonalds @mcdonaldsindia https://t.co/iTtei4fj3o

— Nitin Kale (@imnitinkale) November 15, 2017

#BoycottMcDonalds @McDonalds @mcdonaldsindia

After seeing your billing pattern. Really shame on you.

I urge my friends and people to boycott McDonald foods.@vettitwiter @jayamohan89 @omprakash678 @iswatikaa @AdarshDodo

— (@muruganjai) November 16, 2017

This is what the restaurants are doing. To keep the net impact same they are increasing the base price and reducing gst from 18 to 5% pic.twitter.com/yGLegiT6K0

— Nita Kewalramani (@Nitzmatazz) November 15, 2017

@mcdonaldsindia What is this? You guys think you are oversmart? I anyway don’t eat your trashy food but will ask others to avoid. https://t.co/AYhg65jwyX

— Trader (@TraderEQFX) November 15, 2017

@mcdonaldsindia @McDonalds so this is how you are cheating customers !! Shame on you ..: boycotting you and spread others to do !! #boycottmcdonalds #Shame GST has come down and you have increased rate overnight?? I used to love your burgers but not any more now.. disappointed pic.twitter.com/bRoOVwOk8G

— (@Harsh_Tweeting) November 16, 2017

How delivery charges from rs. 25 goes to 30 and now 33 after gst slab got down from 18% to 5% @McDonalds @mcdonaldsindia

— tanuj (@tjjain13) November 15, 2017

Mockery of #gst #boycottmcdonalds @McDonalds @PMOIndia @arunjaitley pic.twitter.com/QelHac6XdA

— Anand Bhaigade (@bhaigade007) November 15, 2017

@mcdonaldsindia have hiked up their prices and then taken 5% GST! So No difference in the Final Prices

— Drishti 🙂 (@drishti_raina3) November 15, 2017

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.

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

Due to this, our operating costs have gone up. However, keeping customer convenience in mind [2/3]
— McDonald’s India (@mcdonaldsindia) November 15, 2017

we have structured the changes in such a manner that total amount paid by the customer remains the same. [3/3]
— McDonald’s India (@mcdonaldsindia) November 15, 2017