GST on liquor in restaurants in India – Why VAT and GST are charged together in restaurant bill? – With example

GST on liquor in restaurants in India – Why VAT and GST are charged together in restaurant bill? – With example

1.0 Introduction 

Each individual who went to eatery for nourishment dependably dissects the sustenance charge before paying the same. Be that as it may, after first July, 2017, one thing the customers are finding disturbing that both VAT and GST are charged on a similar bill. Individuals dependably question this demand since what they have comprehended is that GST has just subsumed all the current roundabout assessments including VAT. 

To expel all the uncertainty around this theme, we have composed this article with the goal that you can comprehend regarding why GST and VAT are as yet charged together. 

2.0 VAT on liquor is out of GST ambit 

VAT on liquor for human utilization is a state matter where focal government has no right. Further, this require has been kept out of the GST review and might be soon brought into the GST ambit. In any case, presently liquor is as yet secured under VAT and not under GST. 

Consequently, if your bill contains any alcohol divide, at that point you will see that VAT and GST should be charged together. Give us a chance to comprehend by method for instance: 

Q. Mr. A request 3 lager, sustenance and sweet in the request. He had his supper and requested a bill. The cost of the brew, nourishment and sweet is as per the following: 

3 Beers @ 200 each = Rs.600/ - 

Nourishment = Rs.1000 

Sweet = Rs.200 in 

Administration charge should likewise be required @10%. The eatery has requested your recommendation; compassionately help them to raise the GST consistent receipt. Accept VAT @ 20% and GST @ 18%. 

A. According to GST law, GST might be charged on all the sustenance things aside from alcohol. This is on the grounds that alcohol isn't secured under GST and still represented by VAT arrangements. 

Here are the figurings for GST consistent receipt: 

Add up to charge: 1800/ - (counting Rs.600 of lager) 

Include benefit charge @ 10% of Rs.180/ - 

VAT on lager @ 20% = Rs.120/ - 

GST on rest [(1800+180-600)*18%] = Rs.248/ - . 

Subsequently, you can see that VAT and GST should be charged independently. Further, regardless of whether they are charged together, there is no twofold computation in it.


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