VAT on Beer, Wine and Liquor in Maharasthra

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CA Abhishek Chiraniya (Querist)
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22 May 2023 What is the Rate of VAT on Beer, Wine and Liquor sales in a restaurant in Maharashtra. Can anyone please share along with relevant notification or rate schedule.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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11 July 2024 In Maharashtra, the VAT (Value Added Tax) on alcoholic beverages such as beer, wine, and liquor is governed by the Maharashtra Value Added Tax Act, 2002. However, please note that Maharashtra transitioned from VAT to GST (Goods and Services Tax) in July 2017, and now GST primarily applies to such goods. Here's a general overview:

### Before GST Regime (up to June 30, 2017):
Under the VAT regime, the tax rates on alcoholic beverages varied based on the type of beverage and its strength (alcohol content). Here are some general guidelines:

1. **Beer**: The VAT rate on beer was typically around 25% to 35%, depending on whether it was classified as strong beer or light beer.

2. **Wine**: The VAT rate on wine varied, usually between 20% to 35%, depending on factors such as whether it was still or sparkling wine and its alcohol content.

3. **Liquor**: For hard liquor (spirits), including whiskey, vodka, rum, etc., the VAT rate ranged from 20% to 35%, again depending on the specific type and strength.

### After GST Regime (from July 1, 2017):
With the introduction of GST, alcoholic beverages are not covered under GST except for some categories where states have allowed it under their respective state laws. However, Maharashtra levies a separate State Excise Duty on alcoholic beverages.

1. **Beer, Wine, and Liquor**: These items are subject to Maharashtra State Excise Duty, which is administered by the Maharashtra State Excise Department. The rates can vary widely based on the type of beverage, the alcohol content, and the specific policies of the Maharashtra government.

### Relevant Notification or Rate Schedule:
For specific rates applicable to different types of alcoholic beverages under the Maharashtra State Excise Duty, you would typically refer to:

- **Maharashtra State Excise Department**: They issue notifications and circulars detailing the rates of excise duty applicable to various categories of alcohol.
- **Maharashtra VAT Act, 2002**: While not directly applicable to GST, historical rates under VAT might still be referenced in some cases.

### Additional Considerations:
- **Restaurant Specific**: If you are operating a restaurant and selling alcoholic beverages, you would also need to comply with licensing requirements and regulations specific to the sale of alcohol in Maharashtra.

Given the transition to GST and the state-specific nature of alcohol taxation, it's advisable to consult directly with the Maharashtra State Excise Department or a qualified tax advisor for the most current and accurate information regarding the rates applicable to beer, wine, and liquor in your restaurant.