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GST Authorities Cite Subway India For Franchise Model


GST officials have summoned fast food chain Subway over its franchise model in India. The tax office wants to levy an 18% GST on the income or royalties the business receives. Subway currently pays around 12% GST. The fast food chain approached the High Court of Punjab and Haryana, contesting the summons.

The company also sought clarification from the GST Advance Ruling Authority on the applicability of the exact rate of GST on these services.

He said the company should be given an appropriate time to respond to this notice.

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