Liquor is not food, related job work will attract 18% GST

Alcoholic Liquor is not food’ or food product and job work related with manufacturing of such beverage will attract Goods & Services Tax (GST) at the rate of 18 per cent, Andhra Pradesh High Court has said. This rate will be levied retrospectively.

“It cannot be treated as an item of food for many a reasons, particularly, for the advertisements carried on the item that its consumption would be injurious to health, etc,” a division bench of Justices C Praveen Kumar and A V Ravindra Babu said while dismissing writ petition filed by Tirupathi based Esveeaar Distilleries Ltd , the company known for ‘McDowell’ brand of alcoholic beverages like rum, whisky and brandy.

Further, the bench said alcoholic liquor for human consumption does not constitute food or food product under Custom Tariff Act.