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With Budget 2025 approaching, the restaurant and F&B sector is outlining its expectations for stronger tax reforms that could ease financial pressures and improve business operations. A key demand is the restoration of the GST Input Tax Credit, which businesses say would help manage costs and improve cash flow.
There is also a call to simplify GST structures and revisit the taxation of commercial leases under the Reverse Charge Mechanism. Additionally, the sector is advocating for stronger support for the farm-to-fork supply chain to ensure stable sourcing and pricing of ingredients. Industry leaders believe these measures could help businesses focus on innovation and long-term growth.
Read the Union budget 2025 expectations in detail:
Pankaj Prakash Sharma, Founder and CEO, Happa Foods
The food processing industry in India is at a pivotal point, driven by rising consumer demand for sustainable, organic, and nutritious products. As we approach the new budget, we anticipate policies that will foster innovation, boost investment in agricultural infrastructure, and provide easier credit access for MSMEs. Enhancing export opportunities, simplifying GST structures, and supporting the farm-to-fork supply chain are critical steps. These measures can significantly enhance the industry’s growth, making it a cornerstone of India’s economic development.
Aji Nair, CEO, Mirah Hospitality
As we approach the Union Budget 2025, the F&B sector looks forward to measures that address key challenges such as rising food inflation, operational costs, and the intricate tax structures on alcohol and aerated beverages that impact profitability. A progressive framework that fosters innovation, simplifies policies and enables sustainable growth will be pivotal for the industry’s success.
The restaurant sector specifically urges the restoration of the GST Input Tax Credit, which would significantly ease operational expenses and enhance efficiency. Additionally, revisiting the GST notification on commercial leases under the Reverse Charge Mechanism is essential to reduce financial burdens. With these steps, the sector can focus on innovation, customer experiences, and long-term growth.