Breakfast Just Got Dearer After GST Implementation

A simple breakfast of masala dosa and sambar wada just got expensive at Adyar Ananda Bhawan in Bengaluru.

(Photo: iStock)

A simple breakfast of masala dosa and sambar wada just got expensive. BloombergQuint visited one of Bengaluru’s popular breakfast joints, Adyar Ananda Bhawan, within hours of the goods and services tax finally coming into force.

The same meal, which had costed Rs 133 the day before, is now dearer by Rs 15. The price list on the menu hasn’t changed. It’s the new tax structure that’s pushed up the price.

Ananda Bhavan earlier used to charge 15 percent service tax on 40 percent of the menu price. That has now been replaced with a State GST and the Central GST at 11.5 percent each.

Consumers are not happy about the higher prices, said Mohan, the operational manager at the outlet.

Since morning many of our customers are raising the issue of sudden increase in prices and we have been explaining to them that it is because of the new tax regime which kicked in last night.

Mohan, Operational Manager, Adyar Ananda Bhawan

Prices are going to be go up by around 10 percent, added Mohan.

(This story was originally published on BloombergQuint.)