Telangana Govt To Avoid GST On Bar License Fee?:- To avoid paying tax to the Centre, the Telangana State Government has decided to skip Goods and Services Tax (GST) on the license fee paid by bars and the liquor shops.

The Telangana Government has decided to follow the AP Government, which has already avoided paying GST, by introducing a new registration fee and reducing the license fee. The decision has been taken, since the state governments have to pay 18% GST on the license fee collected by them. From every wine shop, the government collects Rs 1.8 crore in license fee and for a bar license in Hyderabad, it charges Rs 40 lakh.

The license fee in the districts for wine shops range from Rs 20 lakh to Rs 60 lakh, depending on the size of the population. There is a common license fee of Rs 40 lakh for bars. Moreover, if their annual turn over crosses seven times the license fee, the liquor shop dealers have to pay 14% tax.

The AP Government, after bifurcation, removed this condition, but the Telangana Government continued with it. Now, the Telangana State Government, in the new liquor policy, is also thinking to remove this condition, which will only benefit to big dealers only. The big dealers will sell liquor at below MRP to increase their turnover, once the policy is removed. But, small dealers cannot.

SUPRAJA