GST regime derails Mainland China's expansion plans; affects profitability

GST affected SRL's profitability by 12%, limiting its scope for expansion across geographies on account of lower cash availability

The expansion plans of Speciality Restaurants Ltd (SRL), which owns brands like Mainland China, Oh! Calcutta, and Sigree Global Grill, have been hit hard under the goods and services tax (GST) regime.

Anjan Chatterjee, founder and managing director, SRL, said while restaurateurs could claim input tax credit under the previous value-added tax (VAT) system, that was not the case now. 

The new indirect tax system, he added, had affected SRL’s profitability by 12 per cent, limiting its scope for expansion across geographies on account of lower cash availability.

During the first three quarters of the current financial year, the company posted a net