05 November 2024

Liquor serving in restaurants without GST!




GST को गोली मार ! 

Bangalore is known as pub capital of India! or even in whole of Asia!! Supposed to have 800+ bars & restaurants. 

Even these many pubs & bars are not able to quinch the thirst of the liquor lovers in Bangalore!

Taking the advantage of this love for liquor of bangaloreans, many dhabas and restaurants have been serving liquor to its customers.   These eat outs will not have license to sell liquor.  However, these restaurants' buy liquor as per customer request from a MRP outlet and serve at their place. 

So what? 

The restaurants will charge customer with an additional 25% over the MRP of the liquor.  But no GST bill is provided for the same. Restaurants only provide GST bill for food items, but not for liquor!! The additional charges or the service fees go unaccounted for.  It is a huge loss of revenue for the GOI. 

For example, if a restaurant serves beer, wine & liquor worth Rs.1,00,000/ per day. They would collect around Rs.25,000/- from customers without issuing any GST bills. (GST bill is issued only for the food items)

If GST bill is issued then they have to show 5% GST amount.  (since it is service, it may fall under 18% slab)

So the loss of GST for GOI in a day is 5% of 25,000, which is equal to 1,250/- per day. 

In a financial year they would collect Rs.25,000 x 365 = 91,25,000 from customers, but no GST bill issued.  The loss in the form of GST is 1250 x 365 = Rs.4,56,250/-

If this is the story of one of the restaurants.  Then what about 100’s of them out there? It is rampant across the city! (without liquor license, but supplying liquor and avoiding GST)

Loss from 100 restaurants in a financial year can amount upto Rs.4,56,250/- * 100 =

Rs.4,56,00,000/- 

This amount is for Bangalore city only.  Think about the whole state Karnataka.  There will be hundreds of restaurants supplying liquor without GST bill.

Then think of the whole of India.  There will be thousands of them. There is a huge loss to national exchequer. 

Liquor may not come under GST, but the act of serving does.  Right? When the food aggregators (like Swiggy, zomato, dunzo, foodpanda, etc.,) are promptly collecting GST and paying to GOI, why not these restaurants do the same? 

Doesn’t it make sense? 

घोडा है, मैदान है, यह बंदा परेशान हैं !


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