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Tax on liquor served in restaurent.

Gourav Modi (21 Points)

20 June 2017

what would be the tax rate to be charged on alcohol in restaurent after 1st July ?

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CS Nisha Nishit (Practicing Company Secretary) (326 Points)
Replied 20 June 2017

it will be 18 %

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Gourav Modi (21 Points)
Replied 20 June 2017

but in liquor there is no GST ?

CS Nisha Nishit (Practicing Company Secretary) (326 Points)
Replied 20 June 2017

It was on restaurant supplying food or drinks with having license to serve liquor. For liquor, tax rate would be same, which is levied currently.

Gourav Modi (21 Points)
Replied 20 June 2017

can i get any article on above ?

CS Nisha Nishit (Practicing Company Secretary) (326 Points)
Replied 20 June 2017

Article on above, please specify -

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Gourav Modi (21 Points)
Replied 21 June 2017

yup article on gst on restaurent on sale of liquor with tax rate

CS Nisha Nishit (Practicing Company Secretary) (326 Points)
Replied 21 June 2017

I have tried to give a comparison about how our food bill will appear with/without liquor in current Tax regime and as in GST regime under different States.

	Under Current Tax Regime (Haryana)			Under GST Regime
S.N	Items	Amount(Rs)	S.N	Items	Amount(Rs)
1	Masala Peanuts	155	1	Masala Peanuts	155
2	Banarasi sheekh kebab	345	2	Banarasi sheekh kebab	345
3	Bloody Mary(Liquor)	295	3	Bloody Mary(Liquor)	295
	SubTotal	795		SubTotal	795
	Service Charge @ 10% (on 795)	79.5		Service Charge @ 10% (on 795)	79.5
	Service Tax @ 6% (on 795+79.5)	52.47		GST @ 18% (on 155+345+79.5)	104.31
	VAT @ 18.9 % (on 295)	55.755		VAT @ 18.9 % (on 295)	55.755
	VAT @ 13.125 % (on 155+345)	65.625		Total	1034.565
	Total	1048.35

	Savings				13.785

	Under Current Tax Regime (Gujarat)			Under GST Regime
S.N	Items	Amount(Rs)	S.N	Items	Amount(Rs)
1	Chicken Fry Spc Smokey Dip	79	1	Chicken Fry Spc Smokey Dip	79
2	Mango Shake	79	2	Mango Shake	79
	SubTotal	158		SubTotal	158
	Service Tax @ 6% (on 158)	9.48		GST @ 18% (on 158)	9.48
	VAT @ 15 % (on 158)	23.7		Total	167.48
	Total	191.18

	Savings				23.7

1 Like

Gourav Modi (21 Points)
Replied 22 June 2017

thanks a lot Nisha ji.. so if i am not wrong acc to GST provision there would be no service charge on liquor

CS Nisha Nishit (Practicing Company Secretary) (326 Points)
Replied 22 June 2017

Taxes on Liquor is out of purview of GST.

But Service Charge charged by Restaurants are an extra charge made for serving customers in a restaurant as tip which is coming under the definition of Services under GST.

Thanks

Gourav Modi (21 Points)
Replied 22 June 2017

Therefore no GST on liquors served in restaurent like earlier it was 6% service tax. And also since delhi government has made service charge as voluntary. Apart from Vat no other tax on setving liquor.