GST authorities have summoned fast-food chain Subway over its franchisee model in India. The tax department wants to levy a GST of 18 percent on the income or royalty that the company receives. Subway currently pays about 12 percent GST. The fast food chain has approached the Punjab and Haryana High Court, challenging the summons.
The company has also sought clarity from the GST Advance Ruling Authority on the applicability of exact rate of GST on these services.
It has said the company must be given appropriate time to respond to this notice.
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