How much tax does Domino's charge on a pizza?
Poor Guys at Dominos pizza have to keep updating their GST rates again and again because of rates changes ( and quite rightly so) by the GST council.At present they are charging 5% ( 2.5% CGST and 2.5% SGST)…Ok ok dont get all panicky as to wtf is CGST SGST when there was one nation one tax etc etc…Its just the bifurcation of 5% stating that 2.5% will go to the centre and 2.5% to the respective state. Instead of the Government bifurcating - we are doing it for them!Here’s a bit more complex part- the 5% is without giving any input credit benefit to Dominos …( whaaat???)..ya without any input credit. Simply put, the GST taxes that Dominos might have paid while buying its raw materials, products, overheads, etc will also be again taxed and they wont be able to add back that tax paid from their final price. Hence you might have seen that some restaurants have increased there prices before GST - or in case of smart marketing strategies by pizza chains/reduce the toppings!!!. Dont think its fair? Of course its not- To do away with “taxes on taxes” is the basic idea why GST was introduced in the first place. Still needs further improvement in my view.To conclude - for now the GST on your Pizza is Basic Price +5% GST ( - a little less toppings !!!)