Waiter: what soup do you want, Clear Soup or GST Soup?
Clubber: What is GST Soup?! Waiter: Not Clear.
If this Whatsapp joke made you giggle, t2 tries to clear the GST party puzzle 

THE TEETOTALLER WOES

Kushal Dugar was the happiest clubbing... until July 1 happened! “Being a teetotaller, I never drank and my only party companion was mostly soft drinks! Now unfortunately water and soft drinks have a GST levy but hard drinks don’t! The worst part is 28% on tobacco! So basically I have almost stopped having shisha and if I do, I take a quick puff from a friend,” said the businessman we spotted with his gang at Nocturne.

HOOKAH HUFFS

It’s hard to find Pallavi Jaiswal (far left) and Priyanka Hada not puffing on shisha at a nightclub. “Hookah is a party must for us and so we won’t stop having it because of GST. Yes, if previously we used to order separate ones for ourselves, now we share one at a time!” said Pallavi at Nocturne.

HIC HAPPY FACES: Waqar Younus, a regular at The Grid, was all smiles. “When GST is making everyone sleepless, it is amazing how there is no GST on drinks! I love the craft beer here and with no extra money on it, pubbing has become better,” said the businessman with friend Iram.

Yum food and GST-free tipple sure made Tanmai Shukla and friend Yachna Srivastav happy at The Grid.“Previously we used to pay more tax on food, now it has gone down to 18% and alcohol has no GST, that has made outings cheaper and happier! Also, being a law student we have to study less about the various taxes... GST has made that simpler too!” said Tanmai, a law student.

“Previously the whole tax calculation used to be confusing but with GST it has become simpler. Also with no GST on alcohol I am very happy,” said Ricky Roy at Nocturne.

UNTOUCHED:
Fashion designer Priyanka Khanna is unaffected by GST. “Professionally I deal with khadi and handwoven fabrics that are GST-free. Then when I go pubbing I enjoy eating and drinking and I am okay with whatever GST rules apply. Yes there will be initial inconveniences but people will get over it eventually,” she said, at The Grid.

MIXED FEELINGS:
“No GST on alcohol is a good thing but I am displeased with the high GST on tobacco and food. I’d rather eat at home than order something at clubs and pay extra,” said Farzana Khan wearing a black bodysuit with culottes at M Bar Kitchen.

THE GST FINE PRINT

Q: How much GST on alcoholic drinks?

A: If you are the one who loves tipple, you are lucky. At present, no GST has been charged on alcoholic drinks, even extending to shots, cocktails or breezers. (Only state excise duty applies.)

Q: What about soft drinks and water? 

A: Next time you leave behind a bottle of water at a nightclub, think twice because as per the new rule if you order  packaged water and soft drinks you will have to pay 18% GST on it.

Q: If I order Red Bull, is that GST-free?

A: Pricey mixers like Red Bull, ginger ale, tonic water are being charged 18% GST. For example, if you order Vodka with Red Bull, you have to pay the tax for the energy drink only.

Q: What happens when I order a JD Coke?

A: If you order a “JD Coke” or “whisky water”, the soft drink and the water fall under GST while the liquor doesn’t. However, most party spots in the city like M Bar Kitchen, The Grid, Nocturne or Myx are not charging for these mixers separately. Places like Shisha Bar Stock Exchange and Whats In D Name will charge GST for mixers.

Q: What if I order some food?

A: There is a flat 18% GST on the food menu. It doesn’t matter if you are ordering one dish or two, starter or main course.

CLUBSPEAK

“Most customers are confused about the multiple taxes they are paying at a restaurant. GST will simplify and help consumers to calculate the bill themselves, with service tax and VAT subsumed into one single rate. No GST on alcohol is a boon to the industry (hope this remains!),” said Gaurav Karnani of The Grid.

“It’s a great change for our economy. Going forward, when most of the issues are ironed out, businesses will realise that they are now saving a lot more in indirect taxes. For example, the hospitality industry gets a big bonus as now we can get input credit on our capital expenditure, a substantial amount that was forgone in the earlier days,” said Aditya Mehta of M Bar Kitchen.

“GST as a concept is good, and so far liquor has no additional tax which is nice. But we have seen a drop of 4% sale in food items, post-GST,” said Nikhil Bhambani of Shisha Bar Stock Exchange.

“Honestly, it is too early to say whether business is hit or not because the concept is new to everyone and guests are taking time to understand. The good thing about GST is the calculation of tax has become easy. But with the GST on tobacco, shisha consumption might get affected,” said Anshuman Singh of Nocturne.

“The concept is new to everyone and there has been no fluctuation in sales yet. Since we have the share bazaar concept where prices go up and down, we haven’t revised our prices,” said Rajdeep Chakraborty of Whats In D Name. 

“One big plus is that with GST coming in, the total entertainment tax of 30% to be paid by an organisation has been abolished. This is a big big relief but then a major disadvantage is that the tax now has to be paid by us during the purchase of liquor, while earlier the taxes were paid later (after sales). The food scene is better now, as earlier we were paying 20.5% tax (14.5% vat+6% service charge) which has now reduced to 18% GST in total. Overall, a very positive move and would do good to everyone in the long run,” said Vicky Metharamani of Myx. 

Text: Pramita Ghosh
Pictures: Rashbehari Das