GST is applicable on the transfer of a liquor licence from one person to another

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....ST is applicable on the transfer of a liquor licence from one person to another<br> Query (Issue) Started By: - rajashekharaiah AM Dated:- 20-2-2026 Last Reply Date:- 27-2-2026 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>Whether GST is applicable on the transfer of a liquor licence from one person to another, where the transfer is between two private individuals and there is no involve....

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....ment of the Government? Reply By KALLESHAMURTHY MURTHY K.N.: The Reply: Sir,&nbsp; In the CBIC Circular No. 121/40/2019-GST dated 11-10-2019, it was clarified in terms of Notification No. 25/2019-Central Tax (Rate) dated 30th September, 2019 that the grant of alcoholic liquor license by State Government, against consideration in the form of license fee or application fee by whatever name i....

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....t is called, as neither a supply of goods nor a supply of service. So also, the transfer of a liquor license from one person to another is a nontaxable transaction. Reply By Sadanand Bulbule: The Reply: I welcome this clear reply. Reply By Anand Lobo: The Reply: Dear Murthy Sir, The matter at hand concerns the subsequent sale of a liquor licence by an existing shop owner to another perso....

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....n. I want to understand the taxability of this secondary transfer, not the taxability of purchasing the licence from the Government. Reply By KALLESHAMURTHY MURTHY K.N.: The Reply: Dear Sri Anand Lobo,&nbsp; Sir,&nbsp; The grant of a liquor license is non-taxable under GST. As it appears in the query, transfer of the license does not form a supply of service, hence no GST is applicable.....

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.... It was clear in my answer at Sl. No. (1). In case of any other segments in the transfer of licensing liquor unit, please refer to an advance ruling delivered by Hon'ble Karnataka Appellate Authority for Advance Ruling, in the case of United Breweries Ltd., 2018 (11) TMI 283 - APPELLATE AUTHORITY FOR ADVANCE RULING, KARNATAKA, wherein it has held that GST is liable to tax under the Service Code....

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.... 999799. Reply By Shilpi Jain: The Reply: In this case the purchaser may be paying the license fee to the state government whereas it may be paying a transfer fees or some other commercial consideration to the seller. If thats the case then the amount paid to the seller may not be in the nature of a license fee and could be taxable. Contract terms relevant<br> Discussion Forum - Knowledge Sha....

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