TaxTMI 
TaxTMI 
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?
Mixed Supply of a GST and Non GST product
01 Sep 2023 
4 Replies 
1363 Views Asked by
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. (AI Summary)
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. (AI Summary)