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GST

Restaurant in composition serving alcohol

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Composition for restaurant services is meant for restaurants serving food and non-alcoholic items. Supply of alcohol for human consumption is outside GST and is taxed under State law, but composition limits and conditions must still be checked carefully.

Provisions

Rule 7, CGST Rules 2017; Sec 10(2), CGST Act 2017; Article 366(12A), Constitution of India

Analysis

Alcohol sales are not GST supplies, but they count in aggregate turnover as non-taxable supplies and can push you over Rs 1.5 crore. Example: a restaurant with Rs 1 crore food sales adds Rs 70 lakh liquor sales; aggregate turnover becomes Rs 1.7 crore and composition is lost. Take professional advice before adding a bar.

Close

  1. Estimate food and liquor sales separately
  2. Check aggregate turnover against the limit
  3. Check State excise and VAT rules for liquor
  4. Exit composition through CMP-04 if the limit is crossed

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Connect nowPay and start: Opting into composition, CMP-02, ₹999

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