New Delhi, Jan 15 (Reporter) Weeks before the interim Budget, restaurant-owners have proposed to the government to create a separate ministry for food services industry, slash the number of licenses required for opening eateries and restore GST input tax credit (ITC) for restaurants. In a letter to Union Finance Minister Nirmala Sitharaman, National Restaurant Association of India (NRAI) has said that the proposed moves would accelerate the growth of the restaurant sector in the country. Pitching for a separate ministry for the food services industry, the NRAI has said that it could change the face of the industry and add tremendous impetus to the organised growth of this sector. "Dedicated leadership, relevant policy initiatives and focussed growth path can usher in an unprecedented vibrancy to the sector," it has said. The industry body noted that on an average a restaurant is required to get 15-25 licenses or no-objection certificates to open and operate a restaurant. "This myriad of licences and permits inhibits food businesses in growing beyond their core geographies and adds to the operational complexity and compliance burden," it said. NRAI has also recommended to restore input tax credit (ITC) to the restaurants while parallelly increasing the rate of GST to 12% from the current 5%. "It is the only industry to be pegged at 5% GST without availability of ITC; a feature designed to avoid cascading taxation. The lack of ITC not only reduces the operating margin of the business significantly, it also enhances the capital budget for a new project significantly," it said. The restauranteurs have also pressed for industry status to food services industry claiming that this will bring in multiple benefits through Central or State industrial policies including easier finance, special schemes, subsidies, fast track clearance processes. "It will also encourage enterprise as well as entrepreneurship," NRAI has said...////...