Exemption for Alcoholic Liquor License Fees

The Central Government, under the Integrated Goods and Services Tax Act, exempts certain activities undertaken by State Governments from GST.

Specifically, services related to the grant of alcoholic liquor licenses, against fees, are neither considered a supply of goods nor services.

This exemption applies to license fees or application fees paid for alcoholic liquor licenses. The notification follows the recommendation of the 26th Goods and Services Tax council meeting held on March 10, 2018.

Issued by Ruchi Bisht, Under Secretary to the Government of India, the notification aims to clarify the tax treatment of alcoholic liquor license fees. Effective immediately, this measure simplifies tax regulations concerning alcoholic liquor licensing activities.

The exemption aligns with the government's efforts to streamline taxation policies and provide clarity on GST applicability in specific sectors.