Notification No. 24/2019 - Integrated Tax (Rate) Explained

Want to File ITR, GST Returns & Pvt. Ltd. Registration

Notification No. 24/2019 - Integrated Tax (Rate): Seeks to notify the grant of alcoholic liquor license neither a supply of goods nor a supply of service as per Section 20(i) of IGST Act read with Section 7(2) of CGST Act.

GST: [TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

G.S.R (E).- In exercise of the powers conferred by clause (i) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (2) of section 7 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council hereby notifies that the following activities or transactions undertaken by the State Governments in which they are engaged as public authorities, shall be treated neither as a supply of goods nor a supply of service, namely:-

“Service by way of grant of alcoholic liquor license, against consideration in the form of license fee or application fee or by whatever name it is called.”

(Ruchi Bisht)
Under Secretary to the
Government of India

Explanation: This notification is being issued to implement the recommendation of the 26^th Goods and Services Tax council meeting held on the 10^th March, 2018 that no GST shall be leviable on license fee and application fee, by whatever name it is called, payable for alcoholic liquor for human consumption.

📚 Frequently Asked Questions (FAQs): Notification No. 24/2019 - Integrated Tax (Rate)

Q1: What is Notification No. 24/2019 – Integrated Tax (Rate)?

Answer:
It notifies that grant of alcoholic liquor licence by State Governments is neither a supply of goods nor a supply of services under GST law notfctn-24-2019-igst-rate-engli….

Q2: From which date is this notification applicable?

Answer:
The notification is applicable from 30 September 2019.

Q3: Which fees are covered under this notification?

Answer:
Liquor licence fee
Application fee
Any similar fee, by whatever name called

Q4: Who grants the licence under this notification?

Answer:
State Governments, acting as public authorities.

Q5: Is GST payable on liquor licence fee after this notification?

Answer:
No ❌.
GST is not payable because it is not a supply at all.

Q6: Does this apply to both CGST and IGST?

Answer:
Yes ✅.
By virtue of Section 20(i) of IGST Act, the CGST provision applies equally to IGST.

Q7: Can you explain with a real-life example?

Answer:
📌 Example:
A restaurant pays ₹10 lakh as liquor licence fee to the State Excise Department.
👉 No GST is payable on this amount.

Q8: Does this exemption apply to alcohol sales?

Answer:
No ❌.
It applies only to licence fee, not to the sale of alcoholic liquor.

Q9: Is alcoholic liquor for human consumption covered under GST?

Answer:
No ❌.
Alcohol for human consumption is outside GST, and this notification reinforces that position.

Q10: What legal provision allows such exclusion?

Answer:
Section 7(2) of the CGST Act, which allows certain activities to be treated as neither supply of goods nor services.

Q11: Was this clarification based on GST Council recommendation?

Answer:
Yes ✅.
It implements the 26th GST Council Meeting decision (10.03.2018) notfctn-24-2019-igst-rate-engli….

Q12: Should businesses show licence fee in GST returns?

Answer:
No ❌.
Since it is outside GST, it is not reported in GSTR-1 or GSTR-3B.
👉 Need help in correct GST reporting?
🔗 https://finodha.in/gst-return-filing/

Q13: Can ITC be claimed on liquor licence fee?

Answer:
No ❌.
Since there is no GST charged, ITC does not arise.

Q14: Does this notification apply across all States?

Answer:
Yes ✅.
It applies uniformly across India.

Q15: Who should carefully understand Notification No. 24/2019 – Integrated Tax (Rate)?

Answer:
Liquor shop owners
Bars & pubs
Hotels & restaurants
GST professionals
👉 Need expert help? Consult a Finodha GST Expert today!
🔗 https://finodha.in/gst-compliance/