The Impact of GST on Restaurant Prices and Consumer Behaviour: An Empirical Analysis

Abstract

In India, GST tax reform is one of the revolutionary steps which made India a unified single tax regime country. This regime is also simplifying the complex tax system and applicable for restaurant's business to restaurant business, retail business to retail business and wholesale business to wholesale business. The implementation of GST will make every product's price same and also giving the relaxation to the customers who buy same product in different states. In this paper an effort has been made to analyse the impact of GST implemented on restaurant prices, consumer behaviour and its impact on overall affordability of restaurant prices. The paper is based on data collection from industry and both primary and secondary research linked with alcoholic & non-alcoholic food and beverages prices. Using these data, an attempt has been made to describe how GST has impact on restaurant prices, consumer behaviour and its impact on overall affordability of restaurant prices.