Restaurants Warned Against Levying Both VAT And GST On Alcohol
There have been incidents where restaurants are levying GST on both food and alcohol.
Revenue Secretary Hasmukh Adhia warned restaurants against charging both Goods and Services Tax (GST) and value-added tax (VAT) on alcohol which currently does not come under the new indirect tax regime.
There have been reported incidents where restaurants are levying GST on both food and alcohol, and separately, VAT on alcohol, Adhia said during a GST Masterclass.
GST Commissioner Upender Gupta, who was also present at the government-organised Masterclass, explained that if customer’s restaurant bill includes Rs 500 for food, Rs 1,000 for alcohol, and Rs 100 service charge, GST should be levied only on Rs 600 (on food and service charge).
VAT as applicable in states should be charged separately on alcohol served in the restaurant, he said.
The GST rate for non air-conditioned and air-conditioned restaurants stands at 12 and 18 percent, respectively.
Also Read: A Biscuit Or Two Less To Dunk After GST
