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

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

The finance ministry on Tuesday cautioned some restaurants 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 restaurants doing so.

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

Potable alcohol does not come under GST.

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

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