MTR’s Coffee rate shows the first set of change brought by GST in city

Bengaluru, 01 Jul 2017: The Goods and Services Tax has finally kicked into gear in India, uniting the previous indirect taxes and cesses into one single tax. Many items are expected to be either cheaper or be largely remain unaffected in the new regime.

Today, the first photo of a bill showcasing such a change went viral on WhatsApp among Bengalureans. The photo is of a bill of the city’s popular restaurant Mavalli Tiffin Rooms’ reasonably well-known filter coffee, shows the effect of the Goods and Services Tax on the beverage commonly accepted to be the staple morning drink of South India.

 

The receipt shows the rate of the coffee cleanly divided as base amount (also listed as the taxable amount), and the GST rate of 18% equally divided in two halves of 9%, with each half being alloted to the Central GST and the State GST respectively. The total amount is shown to be Rs. 38, a slight increase over the original price of Rs. 34. This price hike is expected to cause a minor issue to people who rely on their morning coffee fix.