McDonald’s and Domino’s Pizza have hiked the base price, while others such as KFC are planning to follow suit by next week. “The rollout of the change in GST structure included the elimination of input tax credit, increasing costs for the industry. “Since denial of input tax credit (ITC) has led to an increase in the input cost, we have adjusted prices of a few items to only partially cover this increased cost,” the spokesperson said. Since we do not control prices, it (the hike) is a call that restaurants have to take after factoring in how competition behaves,” a senior officer said. The official said the consumer clearly knows the tax that he is paying, which was not the case when input tax credit was available.

Source: Economic Times November 17, 2017 05:26 UTC