Grant of Alcoholic Liquor Licence is not a supply of goods and service: UTGST

In order to seek towards notifying the grant of alcoholic liquor licence is neither a supply of goods nor a supply of service according to Section 21(i) of UTGST Act read with Section 7(2) of CGST Act, 2017 has been stated through a notification No. 25/2019-Union Territory Tax (Rate) dated 30th September 2019.

Notification states that in exercising of the powers presented by clause (i) of section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) along with sub-section (2) of section 7 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the suggestions of the Council had notified that the following actions or transactions undertaken by the State Governments in which they are occupied as public authorities, would be treated neither as a supply of goods nor a supply of service, that is to say:-

Service by means of grant of liquor licence, against consideration in the form of licence fee or application fee or through whatever names it is called.

This notification has been issued in order to put into action the suggestion of the 26th Goods and Services Tax council meeting which has been held on the 10th March, 2018 that no GST would be levied on licence fee as well as application fee, by whatever name it is identified, payable for alcoholic liquor relating to human consumption.

eStartIndia is the professional tech-based online business and legal service providing platform which helps the clients to simplify the procedures of all kinds of registration, implementation, tax concerns and any other legal compliance and services related to the business in India.

Author:

eStartIndia Team