You are here: Home » Economy & Policy » News » GST
Business Standard

Don't levy GST on alcohol, finance ministry cautions restaurants

VAT as applicable in states should be charged separately on alcohol served at restaurants

Dilasha Seth & PTI  |  New Delhi 

Representative Image
Representative Image

The finance ministry on Tuesday cautioned some from levying goods and services tax (GST) on total food bill, including alcohol, and then value-added tax on drinks.

There were reports of some doing so.

"should not levy both and GST on alcohol," Revenue Secretary Hasmukh Adhia told reporters.

Potable alcohol does not come under GST.

Upender Gupta, GST Commissioner, explained that if in a restaurant is Rs 500, Rs 1,000 is the alcohol bill, then GST should be levied only on Rs 500.

as applicable in states should be charged separately on alcohol served in the restaurant, he said.

GST rate for non air-conditioned is 12 per cent, while a GST rate of 18 per cent is leviable on air-conditioned with a fair of over Rs 7,500.

Meanwhile, sources said e-way bill is likely to be implemented from October.

First Published: Wed, July 12 2017. 01:08 IST
RECOMMENDED FOR YOU