GST impact on restaurant bills: No GST is levied on liquor or liquor products. (Source: IE image) So, its been over weeks now since the historic Goods and Service Tax or GST was implemented in India at a historic midnight bash at the Central hall of the Parliament in New Delhi. The same rates also apply for local delivery restaurants. However, if you are in an AC restaurant, you will have to pay 18 tax irrespective of the fact that it serves alcohol or not. However, liquor will attract VAT, as imposed by your state. So, if you order alcoholic beverages and food, you pay GST on food and VAT on alcoholic beverages. In case the restaurant forces you to pay for it, you can sue the establishment in consumer court. Coming to the tax apart, you have two pay two taxes: service tax and Value Added Tax.
You have your food, you pay the bill and you leave. Back then, you had to pay three extra charges: the Service Charge, Service tax and Value Added Tax (VAT). However, the complex nature of GST has given an opportunity to the restaurant owners to cheat their customers by making them pay extra.