There is no GST on alcohol meant for drinking: alcoholic liquor for human consumption is kept outside GST by the Constitution, and states tax it through excise duty and VAT. Beer (2203), wine (2204) and spirits such as whisky, rum and vodka (2208) still have HSN codes, but no GST rate applies to their sale for drinking.
Services linked to liquor can still be taxed under GST: job work for making liquor is 18%, and food served in a bar or restaurant carries GST. This page explains the codes, bar bills and the points brewers and distillers need. Tobacco is on the tobacco page.
Alcohol: codes and GST rates
Item / HSN / GST- BeerOutside GSTState excise and VAT
- WineOutside GSTState excise and VAT
- Vermouth and fermented beveragesOutside GSTLiquor for drinking
- Cider, toddy and other fermented drinks for drinkingOutside GSTLiquor for drinking
- Whisky, rum, vodka, gin and other spiritsOutside GSTState excise and VAT
- Non-alcoholic toddy and neeraNilNil list
- Job work for making alcoholic liquor18%Service under SAC 9988
- Food served in a bar or restaurant5% or 18%Food is under GST; liquor is not
Quick facts
Constitution
Alcoholic liquor for human consumption is outside GSTTaxes on liquor
State excise duty and VATHSN codes
2203 beer, 2204 wine, 2208 spiritsJob work for liquor
18%Restaurants
GST on food, VAT on liquorDigits to print
4 digits up to Rs 5 crore turnover, 6 above
Liquor hsn code list
| Drink | HSN | Tax |
|---|---|---|
| Beer | 2203 | State excise and VAT |
| Wine | 2204 | State excise and VAT |
| Vermouth | 2205 | State excise and VAT |
| Cider, perry, toddy (alcoholic) | 2206 | State excise and VAT |
| Whisky | 2208 30 | State excise and VAT |
| Rum | 2208 40 | State excise and VAT |
| Gin | 2208 50 | State excise and VAT |
| Vodka | 2208 60 | State excise and VAT |
| Country liquor | 2208 | State excise and VAT |
| Neera and non-alcoholic toddy | 2201 | Nil GST |
How much gst on alcohol in India
None on the liquor itself. The price includes state excise duty, VAT or sales tax, and other state levies, which differ widely between states. A liquor bill therefore shows state levies only, with no central or state GST line. A business buying liquor cannot take GST credit, since none is charged.
Bar and restaurant bills
A restaurant that serves both food and liquor charges GST on the food (5% without credit in most restaurants, or 18% in specified premises) and state VAT on the liquor. The two must be shown separately. A service charge on the whole bill should be split between the food and liquor parts. See restaurants.
Job work and inputs for liquor makers
Job work for manufacturing alcoholic liquor for human consumption is a service at 18%. Brewers and distillers pay GST on bottles, packaging, machinery and services, but cannot use that credit against their liquor sales, which are outside GST. Credit used for other taxable outputs is allowed in proportion. See job work.
Alcohol hsn code in a hotel's books
Hotels and clubs that sell liquor along with rooms and food must keep separate accounts. Room rent and food are under GST, liquor is under state VAT, and common costs such as staff, rent and electricity must be split when working out how much GST credit can be claimed. Credit on inputs used only for liquor sales is not available, while credit on inputs used only for rooms or food is. This split is one of the most common audit points for hotels with bars.
Industrial alcohol
Denatured alcohol and extra neutral alcohol used for industry are treated differently from liquor for drinking. Their GST position depends on their use and the entries for them; check the current notification before billing them.
This page explains the position of alcohol under GST in general terms. Liquor sales are governed by state excise laws, and industrial alcohol has its own rules, so check the GST portal and your state excise department, and ask a GST practitioner or chartered accountant about mixed supplies.
Frequently asked questions
Is GST charged on alcohol?
No. Alcoholic liquor for human consumption is outside GST. States charge excise duty and VAT.
What is the liquor hsn code?
Beer is 2203, wine 2204 and spirits such as whisky and rum 2208.
Is GST charged on food in a bar?
Yes. Food is taxed under GST, while liquor carries state VAT.
How is job work for liquor taxed?
Job work for making alcoholic liquor is 18%.
Can a liquor maker claim GST credit?
Not against liquor sales, since they are outside GST. Credit used for taxable outputs is allowed in proportion.