We are all aware of the chaos and disorder that has been stirring against the backdrop of demonetization. Demonetisation has also negatively affected the entire F&B Industry, rendering the high-value notes of Rs 500 and Rs 1000 notes that account for 86% of our total transactions valueless. The cash crunch and liquidity crises that followed led to consumers and businesses, both, scrounging for ways to make and provide for transactions digitally without the use of cash.
POS Devices to Be Exempted from Excise Duty
This further welcomed the use of Point of Sale (POS) devices as restaurateurs began to deploy POS machines to beat the effect of demonetization and maintain footfalls at their restaurants.
To further facilitate digital modes of transactions, and increase the use of POS machines, and further fuel the agenda of transition to a ‘cashless economy’, Finance Minister, Arun Jaitley tabled a notification that “exempts Central Excise/CV duty (Countervailing Duty) on all goods for manufacture of POS devices subject to actual user condition and these exemptions will be valid until 31 March 2017”.
POS machines will now be exempted from the 12.5 percent excise duty and 4 per cent special additional duty (SAD) till 31st March 2017, which will eventually lead to the cost of POS software coming down by 16.5 percent.
Following the news of demonetization of Rs 500 and Rs 1000 notes, there has been a spurt in the demand for POS machines by business owners, especially retail manufacturers, and restaurateurs. POS services providers have registered a reported surge in the numbers of transactions via P0S software and also in the number of applications by various business owners.
With the cost of POS devices now being slashed by 16.5 per cent, you absolutely have no reason to not have a POS software at your restaurant. You can revamp your restaurant brand with the better use of technology to increase your restaurant profit margins and attract more customers by assuring convenience and choice in modes of payment.