(MENAFN- KNN India)
New Delhi, Jan 9 (KNN) The National Restaurant Association of India (NRAI) has submitted key recommendations to Finance Minister Nirmala Sitharaman, seeking support for the restaurant sector in the forthcoming Union Budget.
Among the key recommendations, NRAI proposed the restoration of GST input tax credit, suggesting a new GST slab of 12-18 percent with ITC for restaurants not located in premium hotels.
The association also requested a review of GST notification on commercial leases through RCM, citing inflationary pressure on smaller establishments and MSME owners.
Additional proposals included the reinstatement of the Service Export from India Scheme with a 5 percent duty credit on forex earnings, and GST reduction on eco-friendly packaging materials.
The association, representing over 500,000 restaurants nationwide, emphasised the industry's significant economic contribution, with an annual turnover of INR 5.69 lakh crores, making it the third-largest segment in the services sector after retail and insurance.
In its submission, NRAI highlighted the industry's role as a major employer, currently providing direct employment to more than 8.50 million Indians.
The association stressed that the sector not only contributes substantially to direct and indirect tax revenues but also drives consumption, promotes tourism, and supports numerous allied industries.
NRAI President Sagar Daryani emphasised the need for structural reforms, including the establishment of a dedicated ministry or department for the restaurant industry.
The association also advocated for industry status recognition, simplified licensing policies, extended operating hours, and employee welfare programs. Daryani expressed optimism that these measures, if implemented, could lead to exponential growth in the sector.
The submission also addressed contemporary challenges, calling for balanced e-commerce policies to ensure fair practices and protect all stakeholders, including restaurants, delivery partners, and consumers.
The association emphasised that timely government support and reforms could unlock the industry's maximum potential while ensuring sustainable growth for millions of employees, consumers, and businesses in the sector.
(KNN Bureau)
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