CLARIFICATION ON TAX ON ALCOHOLIC BEVERAGES UNDER GST

Posted By on June 1, 2017

A query has been raised by our clients from the Hotel Industry regarding the Tax Liability on Alcoholic Liquor (Beverages) after the appointed date (expected to be 01st July, 2017) for GST Rollout.

CLARIFICATION

  1. It is hereby clarified that Alcoholic Beverages have been excluded from Levy and Collection of GST and therefore there will be no GST Liability on Alcoholic Beverages;

 

  1. The Alcoholic Beverages will continue to be covered under the existing state VAT laws and the VAT on Sale of Alcoholic Beverages will be Levy and Collected by the State Government under the existing Rajasthan Value Added Tax Act, 2003;

 

  1. The rate of VAT on Alcoholic Beverages will be same as prescribed under the Schedule to the Rajasthan VAT Act, 2003;

 

  1. All the provisions of the Rajasthan VAT Act, 2003 shall apply on the Hotels & Restaurants in respect of sales of Alcoholic Beverages with regard to:-

a) Levy & Collection of Tax;

b) Filling of Returns : 4 Quarterly Returns and 1 Annual Return; and

c) Assessment and Other Proceedings

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