Why your liquor bills have no GST
Liquor for drinking sits outside GST. Here is what that means at the counter, in plain words.
LiquorSpeed team · · 3 min read
Almost everything sold in India carries GST. Liquor for human consumption does not. When GST was brought in, the Constitution kept alcoholic liquor for human consumption outside it, so the states continue to tax it themselves.
What applies instead
Two state levies do the work. State excise is charged on liquor under the state's excise law, and most states also charge VAT or a sales tax on its sale. The rates, the forms and the dates are set by each state, which is why a store in one state cannot simply copy how a store in another state bills.
What this means for billing
A bill for liquor should show the tax your state asks for, and should not show GST on the liquor itself. Items that are under GST, such as soft drinks or snacks sold from the same counter, are taxed and reported separately. A billing system built for general retail will often get this wrong, because it assumes every item carries GST.
What to check with your accountant
Ask which returns your store must file, how often, and with which department. Rules change, and this article is general information, not tax advice. Your state's excise and commercial tax departments are the final word.
This article is general information, not legal or tax advice. Rules differ by state and change over time.
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