Anti-profiteering Business
A post titled "Le-Chef Restaurant in Faridabad adapting to anti-profiteering" was published in this circle on 10 th May 2018. The same was also published on my blog on 8th August 2017 which was also mailed to National Anti-Profiteering Authority for taking appropriate action.
It seems no action has been taken as the Le-Chef Restaurant not only continuing the business of profiteering after implementation of GST but also now adapting to unethical business practices.
As analyzed in my article on 8th August 2017 in my blog, it was substantiated that the Restaurant in the name of GST, has increased the prices of various commodities as high as 39%. This increase in the prices despite reduction in the impact of the taxes, amounts to anti-profiteering in the name of implementation of GST w.e.f July 2017. Had the concerned authorities taken action under Anti-profiteering business, it would have stopped such practices. The latest experience encountered recently is now being shared wherein the restaurant has not only increased the prices further but have also adapted to unethical business practices.
The veg thaali was being sold at the price of Rs. 190/- with a discount of 15%, the net price being Rs. 161.50. The prices have now been increased to Rs. 201/- with a discount of 14.6%. The significance of 14.6% discount could not be understood. Further, the Restaurant has supplied a gift saying it as Free Gift. Surprisingly, an amount of Rs. 10/- has been charged for this free gift. The term free gift has not been understood when it is charging an amount of Rs. 10/-. The free gift was a cup-shaped object displaying its name as "Le-Chef" with its contact number. It implied that it was for an advertisement of the restaurant. Charging of the amount for a free gift is not only misleading but also an unethical business practices. The same was informed to the restaurant manager in a telephonic conversation on 18th May 2018 wherein he was not able to convey as to why charging for free gift and also what compels to increase the price from Rs. 190/- to Rs. 201/-. more
It seems no action has been taken as the Le-Chef Restaurant not only continuing the business of profiteering after implementation of GST but also now adapting to unethical business practices.
As analyzed in my article on 8th August 2017 in my blog, it was substantiated that the Restaurant in the name of GST, has increased the prices of various commodities as high as 39%. This increase in the prices despite reduction in the impact of the taxes, amounts to anti-profiteering in the name of implementation of GST w.e.f July 2017. Had the concerned authorities taken action under Anti-profiteering business, it would have stopped such practices. The latest experience encountered recently is now being shared wherein the restaurant has not only increased the prices further but have also adapted to unethical business practices.
The veg thaali was being sold at the price of Rs. 190/- with a discount of 15%, the net price being Rs. 161.50. The prices have now been increased to Rs. 201/- with a discount of 14.6%. The significance of 14.6% discount could not be understood. Further, the Restaurant has supplied a gift saying it as Free Gift. Surprisingly, an amount of Rs. 10/- has been charged for this free gift. The term free gift has not been understood when it is charging an amount of Rs. 10/-. The free gift was a cup-shaped object displaying its name as "Le-Chef" with its contact number. It implied that it was for an advertisement of the restaurant. Charging of the amount for a free gift is not only misleading but also an unethical business practices. The same was informed to the restaurant manager in a telephonic conversation on 18th May 2018 wherein he was not able to convey as to why charging for free gift and also what compels to increase the price from Rs. 190/- to Rs. 201/-. more
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I feel all the retailers in B2C cases and specially the restaurants must be indulging in tax evasion. The retailers and restaurants under composition scheme of taxation must be manipulating their turnover figures. It is very easy to have double invoicing one with the accounted system of payments like credit cards, debit cards etc and the second one being cash payment system. The Authorities must have audit system to check on such evasion as it was found some few years back prevalence of such invoicing in hotels and restaurants in Hyderabad. This 5% extra could be getting pocketed. more
Jun 02
Just check authentic cook for Thali prices and they say they pay to charity's also.irs.1000+ more
Jun 01
Government should supervise all resturants and hotels and take action accordingly. more
May 28
Sir, it may not be possible for the Govt to supervise the restaurants and hotels. We expect at least the action is taken appropriately based on the complaint brought to their notice. In the instant case the authorities have been requested to take appropriate action which is yet to be taken. more
Jun 01
@Ranjit Biswas Ji, Sir, I agree it is not only the Le-Chef but many many restaurants have increased the prices on account of GST whereas on the contrary the prices should have been reduced. This increase in prices pretending to be on account of GST clearly substantiate profiteering business. It would be better if other members also put up their report on the restaurants frequently being visited so that Authorities can take action. I personally feel National Anti=profiteering Authority must be taking appropriate action against Le-Chef as the allegations are duly documented. more
May 26
