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GST on restaurant which serve Alcohol

Avinash Jeevan Dsouza (Assistant In Charge Accountant) (3292 Points)

19 January 2022

What is the rate of GST on restaurant which serve Alcohol?

Is it 5% without ITC or 18% with ITC ?

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3 Replies

sabyasachi mukherjee (27574 Points)
Replied 19 January 2022

Food is 5%
alcohol existing vat rates.

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Avinash Jeevan Dsouza (Assistant In Charge Accountant) (3292 Points)
Replied 19 January 2022

Do you have any order from the GST Dept?

Shivam RC (Student) (23683 Points)
Replied 21 January 2022

Under GST there is no distinction between restaurant serving alcohol and restaurant not serving alcohol.

The current GST rate which is applicable on Restaurant Service is 5% without ITC. And if your restaurant is located in a "specified location" i.e. in a Hotel having room tariff more than Rs. 7,500 per day, then 18% GST with the benefit of ITC is applicable.

As far as Alcohol is concerned, you need to charge VAT Rate which is applicable in your state. Note that GST is not applicable on Alcohol for human consumption. It is out of the purview of GST.

You may refer Notification No. 20/2019 - Central Tax (Rate), dated 30th September 2019.

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