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Arpit Agarwal
in Tax and Accounting Law
Asked June 20, 2017

Current taxation policy on liquor

  • 1 Answer

At present what are the provisions for taxation in regard to LIQUOR i.e. a VAT @ 20% is payable on sale of liquor then what about any tax paid by AC RESTAURANT on purchase of liquor i.e. whether excise duty or VAT. As the liqour is outside GST regime and normal vat @ 20% will be charged by restaurant but If a restaurant charge service charge on sale of LIQUOR @ 10% then on this service charge vat will be applicable or GST?

Answer 1

Sir, any retailer example an A/C restaurant has to pay the government excise tax for the purchase

and sale of Alcohol. Further GST is not anyway attached to alcohol services as for it to be

A constitutional amendment is required. Lastly service charge is not a tax and is only a charge the

hotel takes for providing its services her nor VAT nor GST can be levied on service charge and

both are independent.

Agree Comment 0 Agrees over 3 years ago

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