Starbucks may get Fined for not reducing price after GST rate cut

The tax authorities have questioned the Seattle-based coffee chain about its prices and had also issued two set of letters seeking data after GST cut.
  • Franchise India Team Editor
Restaurant India

World’s largest coffee chain Starbucks may get fined in India for not reducing prices of its offerings after the GST rate cut.

The tax authorities have questioned the Seattle-based coffee chain about its prices and had also issued two set of letters seeking data after GST cut.

According to the reports the coffee chain that entered India in partnership with Tata Group has shared data of its prices and costs in a detailed reply to the National Anti-profiteering Authority (NAA).

Starbucks had argued that the denial of input tax credits had neutralised the cut in GST and thus its operational costs were not impacted. However, the anti-profiteering committee may fine the coffee chain in the next few weeks.

Tata Starbucks runs over 100 café chains in India and is planning to add over 50 restaurants by 2019 end.

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