TS Govt demands to reduce GST on liquor bars

Hyderabad, June 28: As we know that, the Centre passed GST bill will be implemented on July 1.

GST bill classified into various percentages depends on the products and also exempts some products and services.

The Telangana government has decided to avoid GST on the license fee paid by Liquor bars and shops here on Wednesday.

With the state governments aligned to pay 18 percent GST on the license fee collected by them, the TS govt now has decided to reduce the license fee in order avoid paying tax to the Centre.

Currently, the government collects Rs 1.8 crore in license fee from every wine shop and charges Rs 40 lakh for a bar license in Hyderabad while the fee ranges Rs 20 lakh to Rs60 lakh for wine shops in districts but the fee for bars is fixed at Rs 40 lakh.

14 percent tax has to be paid by the Liquor shop dealers if the annual turnover crosses seven times the license fee.

Post-bifurcation, the AP government removed this condition and now has introduced a new registration fee along with reducing the license fee to avoid paying GST.

The Telangana government is also planning to remove this policy which in turn will benefit the big dealers as they will be able to sell liquor at below MRP increasing their turnover.