Levy of GST on Liquor License Fees

The much awaited minutes of GST Council, have been release and have been updated till 4th May 2018. The first and one of the most important part of the minutes of the meeting of levy of GST on liquor license Fees contained in Para 36 and 37 are as under: 

 

Agenda item 14(iv): Minutes •of meeting on GST on Liquor license fee convened on 20th February, 2018 

 

36. Introducing this Agenda item, Secretary stated that during the earlier meetings of GST Council, it was decided to further examine the issue of levying GST on licence fee for alcoholic liquor for human consumption. He stated that he had chaired a meeting on this issue on 20 February, 2018 wherein officers from Punjab, Haryana, Himachal Pradesh, Telangana and Uttar Pradesh presented their views and suggestions. In view of the discussions, it was recommended that GST was not leviable on licence fee for alcoholic liquor for human consumption and that this would also apply mutatis mutandis to the demand raised by Service Tax/Excise authorities on licence fee for alcoholic liquor for human consumption in the pre-GST era i.e. for the period from 1 April, 2016 to 30 June, 2017. Dr. Sambasiva Rao, Special Chief Secretary (Revenue), Andhra Pradesh, suggested to suitably incorporate in the Minutes, the phrase ‘licence fee and application fee by whatever name it is called’ . The Council agreed to the suggestion of the Secretary as also the addition proposed by the Special Chief Secretary (Revenue), Andhra Pradesh. 

 

37. For Agenda item 14 (iv), the Council approved that GST was not leviable on licence fee and application fee by whatever name it is called for alcoholic liquor for human consumption and that this would also apply mutatis mutandis to the demand raised by Service Tax/Excise authorities on licence fee for alcoholic liquor for human consumption in the pre-GST era i.e. for the period from 1 April, 2016 to 30 June, 2017.

 

The last few lines of para 37 i.e. “the Council approved that GST was not leviable on licence fee and application fee by whatever name it is called for alcoholic liquor for human consumption” clears the air that GST is not leviable on liquor license fees.