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TMI BlogGST Provision on Providing Alcohol Liquor in ClubX X X X Extracts X X X X X X X X Extracts X X X X ..... GST Provision on Providing Alcohol Liquor in Club X X X X Extracts X X X X X X X X Extracts X X X X ..... atly Please Guide , How to Process Regards & Thanks Reply By Sadanand Bulbule: The Reply: Dear Nilesh ji Only food is taxable. Alcoholic liquor for human consumption is outside the ambit of GST regime vide Section 9[1] and the VAT Act is no more live. So in tax invoice, supply of these articles/price need to be separately shown and accordingly charge applicable GST on supply of food only. Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply By VENU K: The Reply: The supply of food is generally taxed as a composite supply of service as per Para 6 b of Schedule II Supply by way of or as part of any service or in any other manner whatsoever of goods being food or any other article for human consumption or any drink (other than alchoholic liquor for human consumption) where such supply is for cash deferred payment or other valuable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration Generally under GST, restaurants fall under the 5% GST rate, with no option to claim input tax credit (ITC) In my understanding Petroleum products as well as alchoholic liquor were even outside VAT atleast in the state of Kerala. In Kerala it was taxed under Kerala General Sales Tax Act (KGST) even during the period of VAT regime. This law exists even today. Petroleum products (On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly first sale in the state is taxed) do get taxed. Similarly all retail outlets as well as bars are paying tax on alchoholic liquor under KGST Act. Tax on petroleum products and liquor are the major source of revenue as far as states are concerned on which they have control, which can be hiked by state legislatures. So in my opinion GST is applicable on sale of food beverages (Other than alchohol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic liquor) and the respective state tax shall be payable as far as sale of liquor is concerned. It should also be verified whether the respective state government has powers as per their laws to tax clubs (Mutuality concept and Calcutta Club judgment) and whether they are taxing the same. If yes supply of alchoholic liquor is definitely taxable under the state laws. Reply By KASTURI SETHI: The R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eply: Alcoholic Liquor is subject to State duty. Reply By Shilpi Jain: The Reply: Tax on liquor for human consumption is VAT and not GST. Though if there is no breakup between the amount charged for liquor and for food then the entire amount collected by club would be liable to GST and the liquor portion will be liable to VAT as well. So better to bifurcate the consideration Reply By Shilpi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jain:
The Reply:
If your night club is in a premises where accommodation services are not provided the food will be 5% without ITC.
Though further details would enable giving proper advice
Reply By KASTURI SETHI:
The Reply:
I support the views of Madam Shilpi Jain. Thus the client will be able to avoid composite supply de jure. X X X X Extracts X X X X X X X X Extracts X X X X
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