MVAT and GST on Liqour

This query is : Resolved

Piyush (Querist)
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12 July 2023 Assesse want to enter into business of organising parties with live dj and bar, liquor needs to be purchased for the same on the day of event

How can the same be done as it does not have liquor license also the Same will be sold at the venue so is revenue collected is under the purview of GST VAT or any other levy

What is the process to get this thing sorted

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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09 July 2024 Organizing parties with live DJ and a bar where liquor is served involves several legal and regulatory considerations in India. Here’s an outline of steps and considerations you would need to take into account:

### Liquor License:

1. **Obtaining a Liquor License**: To legally serve and sell liquor at events, you need to obtain a liquor license from the respective state excise department where the event will be held. The process and requirements for obtaining a liquor license vary from state to state. Typically, you would need to apply for a license specific to the type of event (e.g., temporary or permanent license for events).

2. **Conditions of the License**: Ensure compliance with the conditions laid down by the excise department, such as permissible hours of sale, age restrictions, serving limits, etc.

### Taxation:

1. **GST (Goods and Services Tax)**:
- If your turnover exceeds the threshold limit for GST registration (currently ₹20 lakhs for most states in India), you must register for GST.
- GST would be applicable on the supply of goods (liquor) and services (organizing events), depending on the rates prescribed for each category.

2. **Other Taxes or Levies**:
- Apart from GST, there might be other local taxes or levies applicable, such as entertainment tax (if applicable in your state) or any local body taxes.

### Process to Get Started:

1. **Business Registration**: Register your business entity (e.g., LLP, Private Limited Company) as per your choice.

2. **Obtain Necessary Permits**:
- **Event Management License**: Depending on your state, you might need a specific license for organizing events.
- **Food License**: If serving food, obtain a Food Safety and Standards Authority of India (FSSAI) license.
- **Fire Safety and Other Permits**: Ensure compliance with fire safety regulations and any other local permits required for organizing events.

3. **Liquor License Application**:
- Contact the local excise department for the specific requirements and application process for a liquor license.
- Typically, you would need to submit an application form, pay the requisite fees, and comply with the conditions specified by the department.

4. **Compliance with Regulations**:
- Ensure strict compliance with all legal and regulatory requirements, including those related to serving alcohol, age verification, security, etc.

5. **Accounting and Tax Compliance**:
- Maintain proper records of all transactions, including purchases and sales of liquor, and comply with GST filing and payment obligations.

### Professional Assistance:

Given the complexity and legal implications involved in serving liquor and organizing events, it’s advisable to seek assistance from professionals such as legal advisors, chartered accountants, and event management consultants. They can help navigate the regulatory landscape and ensure compliance with all applicable laws, which is crucial for running your business smoothly and legally.