CONFLICTING INTERESTS IN TAXATION OF ALCO-BEVERAGES
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 9-2-2018
Till GST was introduced in India in July, 2017, taxation of alco-beverages was in absolute domain of State taxation- be it value added tax or sale tax, duly on manufacture in the form of state excise duty, municipal taxes such as octroi, entry tax etc.
In GST regime, taxation of alco-beverages has been specifically carved out of GST so much so that GST shall not be levied on alco-beverages – manufacturing as well as marketing or distribution thereof. However, certain inputs, input services and value additions in relation to such products shall be liable to levy of GST which puts this industry into a di
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the regulation of this industry calls for Government's control, regulation, supervision requiring more than one permission, licence, permit or fee. The industry players are required to pay amounts for all such permission or licences or permits. Such payments become mandatory for the furtherance of business of alco-beverages these are not in the nature of tax (goods and service tax) and as such, levy of such fees can not be objected to permit fee or licence fee payment to Government or Local Authority is an essential payment to pursue business without which business operations can not continue. These payments enable continuity of business and therefore are support services for business or commerce.
These payments would attract levy of
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