Question ID :
38178
GST ON REVERSE CHARGE
Dear Sir,
We are running a hotel in which there is a bar for that we have to deposit Licence fess with the district excise department every year which is a state govt office to run BAR in our hotel. Sir, my query is will be have to pay GST on reverse charge on it. My view is that since the main product i.e is Liquour is out of GST net, will licence fees to run bar liable to GST under reverse charge
Posted by
VIPIN GUPTA
on
Jun 03, 2019
Filed Under
GST
no. grant of licence to run a bar is not a commercial activity of the STare, The control over alcoholic and narcotic substances is a soverign function of the State, hence no GST on RCM i=on the licence fee paid.
Posted by
CA. VENKITARAMAN K V on
Jun 03, 2019
Answer ID :
76734
No GST on licence fee
Posted by
SIVADAS CHETTOOR on
Jun 04, 2019
Answer ID :
76742
With the respect Your Present scenario mention since said license fees service is not Cover under reveres charge mechanism. since, license fees is collected by states department for permitting hotel for serving liquor to Customers.
Posted by
JIMIT DEVENDRABHAI SHAH on
Jun 04, 2019
Answer ID :
76785
no. no license fees is payable in the license fees for running the bar..
Posted by
CA. JHA SHANKAR KUMAR on
Jun 07, 2019