Summary:

Mr. Zorawar Kalra, Vice President of the NRAI, believes that with the right government support, India's restaurant sector could create 1.5 crore jobs by 2028, up from the current 85 lakh. Key requests include granting 'industry' status and allowing input tax credit (ITC) under GST. Currently, restaurants face limited tax options—5% GST without ITC or 18% with ITC. The NRAI is in discussions with the government to resolve this issue.

Tensions exist between the NRAI and food delivery aggregators like Swiggy and Zomato, particularly over Zomato's entry into quick-commerce with private-label products, which the NRAI claims undermines fair competition. The NRAI calls for more dialogue to ensure mutual benefit and understanding of industry challenges. Regarding the service charge issue, which is currently under consideration in the Delhi High Court, Mr. Kalra believes that with the right regulatory support, the sector could exceed job creation projections.

Source: IBEF

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