Is There GST on Alcohol, Liquor and Beer? Alcohol has been exempted from the goods and services tax (GST) for now as it needs a constitutional amendment for bringing it into the new tax regime. The decision is speculated to impact negatively on the sector. While there are high chances that the cost of beer will rise.
What impact would GST have on liquor sector?
The share prices of liquor companies have already dropped up to 6 per cent in the past four sessions with IFB Agro Industries BSE -7.25 % falling the most at 6.4 per cent, followed by Global Spirits (down 5 per cent), Ravikumar Distillaries (down 5 per cent), United Breweries (down 5 per cent), Mount ShivalikBSE -4.52 % (down 2.5 per cent) and Winsome BreweriesBSE -2.52 % (down 1.40 per cent).
Edelweiss Securities assumes the sector will be impacted negatively unless the government permits the refund of the irrecoverable taxes. There is also a clarity awaited on the input tax credit under GST.
