TaxTMI 
TaxTMI 
Is leasing out License to trade in Liquor is to be classified as IPR services. If yes is GST rate 12?.
GST Rate Applicable
27 Jul 2018 
3 Replies 
5042 Views Asked by
GST classification of liquor licences determines if supply is treated as IPR service or as taxable supply at higher rate.
Leasing a licence to trade in liquor may be classified either as a supply treated under the goods-to-service conversion attracting the standard higher GST rate, or as an IPR-related service subject to a lower IPR service rate. The author favors classification as not being IPR because statutory intellectual property regimes do not govern liquor licences; other respondents agree unless the licence involves use of another party's trademark or trade name. The precise GST applicability and rate depends on the factual characterisation of the licence. (AI Summary)
Leasing a licence to trade in liquor may be classified either as a supply treated under the goods-to-service conversion attracting the standard higher GST rate, or as an IPR-related service subject to a lower IPR service rate. The author favors classification as not being IPR because statutory intellectual property regimes do not govern liquor licences; other respondents agree unless the licence involves use of another party's trademark or trade name. The precise GST applicability and rate depends on the factual characterisation of the licence. (AI Summary)