Mixed Supply of a GST and Non GST product

[DAMINI TALWAR]

We are running a restaurant business and have added a new combo pack of Sushi (Food) + Wine (Alcoholic liquor for human consumption) for a defined value of Rs. 1500. Is GST is required to be charged on total value of food and alcoholic and need to be reported as taxable sale in GSTR-1? What is the possible treatment under VAT to report the same and discharge VAT liability? And if we report Rs.1500 in both GST and VAT wouldn't it result in double reporting of a supply?

[Sadanand Bulbule]

Dear Sir

In terms of Section 9[1], the supply of alcoholic liquor for human consumption is kept outside the domain of GST regime. The question of payment of GST on combo sales of wine with food or solo sales of wine does not arise.

As regards to your supplementary query about VAT, it is not clear to answer. Why reporting the same again under VAT during the GST regime? Plz double check it..

[KASTURI SETHI]

Supply of non-GST goods cannot form part of mixed supply or composite supply. Section 9(1) clearly excludes alcoholic liquor for human consumption.

I support the views of Sh.Sadanand Bulbule, Sir.

[KASTURI SETHI]

Sh.Dhruv Chopra Ji,

When non-GST goods cannot form part of mixed supply, how will there be reporting of double taxation ? There is no question of double taxation at all.

[Shilpi Jain]

Best way is to bifurcate in the invoice the value towards liquor and on the remaining amount charge GST as applicable to the food.

Else dept could tax the entire amount at the rate applicable for food by treating it as a mixed supply.

AI Summary

Exclusion of alcoholic liquor from GST means GST applies only to food in combos; bifurcate invoices to avoid full-tax treatment. Alcoholic liquor for human consumption is excluded from GST, so GST is not chargeable on the liquor component of a food+liquor combo. Non GST goods cannot form part of a mixed or composite supply for GST; sellers should bifurcate invoice values and charge GST only on the food portion. If values are not segregated, the department may recharacterise the entire combo as taxable under the rate applicable to food. Reporting the same supply under VAT during the GST regime is not appropriate and does not create double taxation where the liquor portion is outside GST.