Restaurant sector has potential to provide 1.5 cr jobs: NRAI

India’s restaurant sector has the potential to provide employment to 1.5 crore people by 2028, from 85 lakh at present, provided it gets the “right impetus” from the government including an ‘industry’ status and benefit of input tax credit on GST, National Restaurant Association of India’s (NRAI) Vice President Zorawar Kalra said on Wednesday.

The NRAI claims to represent 5 lakh restaurants across the country. The association has been at loggerheads with food delivery aggregators like Swiggy and Zomato primarily over the aggregators’ foray into the quick-commerce space with their own private-label brands, arguing this move undermines fair competition and harms independent restaurants.

“We don’t have a separate industry status, that would be a big positive move, as it would give us a voice,” Kalra told PTI.

The NRAI Vice President, who is also the Founder and Managing Director of Massive Restaurants Pvt. Ltd, described the lack of input tax credit on GST as a “major issue” faced by the country’s restaurant industry, expressing hope that the issue will be taken up as the Association was in talks with the “right people”.

Under the prevailing Goods and Services Tax (GST) framework, restaurants fall under the 5 per cent GST rate, with no option to claim input tax credit (ITC) or the 18 per cent GST rate, with ITC claims.

The Delhi High Court has set May 9 as the date to hear pleas of restaurant bodies including the NRAI and Federation of Hotel and Restaurant Associations of India challenging an order against the mandatory levying of service charge on food bills.

Asked about the service charge issue, Kalra refrained from commenting saying the matter was subjudice.

He, however, argued that the service charge levy was a globally “accepted norm”.