Respected Expert
My Client is intend to start the Club where in He will Provide Foods & Alcohol Liquor, What Will Be GST Implication, Is VAT is Applicable on Liquor and GST is Applicable on Foods Seperatly
Please Guide , How to Process
Regards & Thanks
GST Applies Only to Food in Clubs; Separate Charges for Liquor to Avoid GST on Entire Bill A client plans to open a club offering food and alcoholic beverages and seeks advice on applicable taxes. Experts clarify that GST applies only to food, while alcoholic liquor is exempt from GST and subject to state taxes. They advise separating charges for food and liquor to avoid GST on the entire amount. The general GST rate for food in restaurants is 5% without input tax credit. State laws may impose taxes on liquor, and clubs should verify if state laws apply to their operations, considering mutuality concepts and relevant judgments. (AI Summary)