GST burns the lips of Indian Coffee Lovers

GST burns the lips of Indian Coffee Lovers
04 Jul 2018

The historic Indian Coffee House (ICH) is levying huge amount from the adorers of Indian coffee under the shade of GST. It is alleged that an amount of 31 lakhs per month is being plundered from the coffee lovers of the state under the statutory shade of GST. Though the cost per cup of Indian Coffee House Coffee varies from region to region, it is Rs. 13 in Kerala region. The ICH authorities have fixed up the price Rs. 12 per cup in Kerala. But the GST factor @5% adds sixty paise per cup to fix the price at Rs.12.60. While rounding upwards the final amount is again fixed up at Rs.13. Means 40 paise is extra levied from the coffee lovers in the name of rounding upwards the GST factor.

Though the amount in terms of naya paise seems to be so negligible, the gravity of the issue when consolidated is so great. Indian Coffee House has about 400 outlets in India and out of which 51 branches are there in Kerala. The average consumption in an outlet is approximately calculated to 5000 cups per day. While relying upon this data one has to reach at a conclusion that an amount of Rs. 31 lakhs is being plundered from the adorers of Indian Coffee around the state under the statutory shade of GST. Since the cost per cup of Indian coffee from the ICH outlets varies, it is very difficult to obtain a more consolidated version of the issue.

The vital question here is whether ICH properly accounts or not the whole amount collected from the public in the name of GST. Matter-of-factly the answer is ‘no’, because ICH is liable to account only sixty paise per cup towards GST. The other portion of forty paise need not be accounted for as per the existing financial laws. Means the consolidated portion in terms of the forty paise per cup to the tune of Rs. 31 lakhs flows inward to the ICH’s sales revenue. In order to make the accounts proper ICH may bring the same under existing sales revenue system, but it does not justify the action of unnecessarily levying of forty paise from the public in the name of rounding upwards the GST factor.

While reckoning the unjustifiable levying of forty paise from the public, one could not justify the negligibility of the comfortable forgotten forty naya paise. It’s a customary practice in Kerala, even with the ICH itself, the establishment barters sweets in the context of unavailability of paise or required change. In fact ICH should barter sweets for forty paise to the public while the bills are so produced. ICH should also remember that there are sweets costs forty paise in our market.

Share

admin

Leave a Reply

Your email address will not be published.