Quick Summary
The National Restaurant Association of India (NRAI) has appealed to FM Nirmala Sitharaman to include targeted reforms and incentives for the restaurant sector in the Union Budget 2025-26. Representing over 500,000 restaurants nationwide, NRAI highlighted the industry's pivotal role in India's economy, from generating employment and driving consumption to contributing to tax revenues and supporting allied industries. Key Contributions of the Restaurant Industry Employs over 8.5 million Indi
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FAQ :
The NRAI is requesting targeted reforms and incentives for the restaurant sector, including GST input tax credit restoration, a review of GST on commercial leases, reinstatement of the SEIS scheme, reduced GST on eco-friendly packaging, and grant of industry status.
The restaurant industry directly employs over 8.5 million Indians, has an annual turnover of approximately Rs 5.69 lakh crore, making it the third-largest contributor in the services sector, and is a significant driver of consumption and tourism.
NRAI proposes restoring GST Input Tax Credit (ITC), introducing a new GST slab between 12% and 18% with ITC for restaurants outside hotels, excluding restaurants from GST on commercial leases via RCM, reducing GST on revenue-share rentals from 18% to 5%, and lowering GST on eco-friendly packaging from 12% to 5%.
They are seeking targeted subsidies for essential ingredients, utilities, and waste management, especially for small-town restaurants, and improved access to debt financing for SMEs.
Granting industry status would recognise the sector's immense contribution to the economy and pave the way for more structured reforms and investments.
NRAI advocates for equitable e-commerce policies to create a level playing field and a simplified, standardised, country-wide licensing framework covering food safety, hygiene, environment, human safety, and taxation.
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