GST Affects Chennai Central Food Services.

Increase in Prices has proportionally witnessed drop in the profit margin & sales of food outlets affecting both the business & services.

Martin F.R., Sub-Editor

martinfr@thecentrist.net

                                                                                                                                                        Photo credit-Martin            Local passengers stunned by increasing prices of food items due to GST in Food central.

CHENNAI CENTRAL: Rolling out of GST since July, 2017 to till now, has substantially dropped the sales of food service outlets across Chennai Central Railway Station as consumers find steep rise in prices making a big hole in their pockets which has led to less commuters utilizing these services.

As the nation gears up for a major economic overhaul, it seems the ground level looks quite bleak, as the sudden move brings storm in the economic budget of the lower middle class & poor people of this country.

Such is the fate of the nearly 20 lacs commuters, daily passing by Chennai Central Railway, the Southern Railway Headquarters, who are witnessing the sudden spike in prices, unbearable. The food Plaza, which stores thalapakati biryani, Madras Coffee House, Tibbs Frankie          other Railway outlets, the prices have been increased by nearly 30 %.The prices of Frankie’s ,a handy quick power boosting snack for daily commuters have been increased from Rs.60 To 80/85 Rs. which seems huge. Similarly, taxes levied in name of GST on prices of non-veg items have been substantially spiked up.

Commuters rush seems negligible in morning wee hours where only high end upper middle class are flocking to such outlets.

 "I have been doing up & down to Bangalore on daily basis and I am a regular commuter of Chennai central railway station, and in the morning wee hours, I cannot demand my wife breakfast, so the only source have been railway food for a middle class person like me, I don’t care whether its GST or anything else, what I know that its damn burning my pocket", says Muthuramalingam P., a worried lower level IT professional.

 Railways are predominately supported by profits it gains from subsidiary units like IRCTC & Other rented out food outlets to contracted private players. Of such a massive base of commuters, nearly 40% have shifted towards either nearby local outlets outside stations, who have not yet implemented GST rates or willingly have come out of GST ambit holistically, having seen spike in profit margin in sales by not implementing it on board.

“Increase & decrease in prices of food items is not in our Hands when such a massive policy like GST is taken without consultation of smaller private entities like us, where many of our branches are running on lower profit margins & losses simultaneously, of course it’s causing problems to the commuters, but also such is our plight too. We cannot do much about it”, says Karthick, the manager of IRCTC unit of central food plaza.

At least the government should keep this GST out of traditional food items, which has caused so much anguish in poor Group-D railway workers such as me as the basic items like idly dosai, vadai, sambhar all have been daily staple for us, increase in price is not affordable on long term for us, is this what the government is doing in return 7^th pay commission wages. They should think about social issues not just about market”, says kanna amma, a Group D worker of Indian Railways.

Another person, an old age man Mr.G Sundaram says, “I have never ever used all these railways food services I consider the quality so pathetic, that I should not shell out even a single penny of mine on it, already what they sell is highly priced, now this GST is extra protection for their illegal business practice they have been accustomed too for so long, so I think I don’t need to talk much about as I am not affected by GST directly, I would don’t complain much change your lifestyle, no one will listen to us.”

The Government bringing economic reforms in name of GST is of course a long overdue, but to put an end to the their past economic faults ,people are not one who should  face such an economic assault which affects their daily livelihood especially when this country has nearly 40 crores poor people.

 The State Government should at least help the so called lower middle class division by reducing State GST tariffs as a quick remedial measure, to avoid public outbursts, especially when such crucial economic reforms are being carried out. Rolling out this tax reform should be done in phased manner to ease out, the already pressurized lower middle class & poor masses across the country.