Vat on beer and wine

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2014 DEAR ALL,
I HAD QUERY REGARDING TAXABILITY OF BEER AND WINE IN MAHARASHTRA.
A. IN CASE OF RETAILER.
B. IN CASE OF PERMIT ROOM.

WHAT IS RATE OF TAX IN ABOVE 2 CASES. IS FRUIT WINE IS EXEMPT FROM MVAT.

ALSO IN WHICH FORM RETURNS NEEDS TO BE FILED.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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04 January 2014 Two tax rates are given in the Sch 4.Foreeign liquors (including beer) as defined in Foreign Liquor Rules of Maharashatra,..50%,Wines...20%,Aerated and non-aerated drinks..20%. No difference between retailer or whole seller in the schedule....mjk

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2014 SIR BUT AS PER NOTIFICTION LIQUOR SOLD BY RETAILER IS EXEMPT EXCPT WINE. GUIDE ME

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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02 August 2025 You're right to seek clarification — taxation of liquor, beer, and wine in Maharashtra involves **excise laws** alongside **MVAT provisions**, and there have been **exemptions** granted over the years.

Let’s break it down:

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### 🥂 **1. MVAT on Beer and Wine in Maharashtra** (as of 2014)

#### A. **Beer and Foreign Liquor (IMFL)**

* **Under Schedule C of MVAT**: These were taxed at **50%**.
* But **as per Notification dated 1st April 2011**, **beer, country liquor, and IMFL sold by retailers under a liquor license** were **exempted from VAT**, provided:

* Sale is done **through retail outlets (FL II license)**.
* **Excise duty** is already charged under Bombay Prohibition Act.

So:

> ✅ **Retail sale of beer and IMFL** = **Exempt from MVAT** (Excise duty applies instead)

#### B. **Wines (including fruit wine)**

* **Not exempt** unless specifically notified.
* **Taxable @ 20%** under MVAT (Schedule Entry C-107, 2014).

#### C. **Fruit Wines**

* No general exemption under MVAT unless:

* Specifically notified as an "agricultural product" (rare),
* Or sold by state-authorized co-operatives.

➡️ **So yes, fruit wines are taxable at 20% under MVAT** unless a special exemption exists.

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### 🍽️ **2. Permit Room (Restaurants / Bars)**

* Sale of liquor in a **permit room or bar** is also generally **covered under excise**, not MVAT.
* However, **wine sold along with food in bars/restaurants** may attract MVAT **@ 20%**, depending on invoice bifurcation and licensing.

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### 📄 **3. MVAT Return Forms**

If VAT is applicable (e.g., for wine sales):

* **Form 231** – for monthly VAT return (manual or e-return for registered dealers).
* **Form 233/234** – depending on the composition scheme or audit limit.

If exempt (e.g., beer sold by licensed retailers), still file a **nil return** if you're a registered dealer.

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### ✅ Summary:

| Item | Retailer (FL II) | Permit Room | MVAT Rate (2014) |
| --------------- | -------------------------------- | ------------------------------ | ---------------- |
| **Beer / IMFL** | Exempt (excise only) | Exempt (excise only) | 0% MVAT |
| **Wine** | Taxable | Taxable (if billed separately) | 20% |
| **Fruit Wine** | Taxable (unless notified exempt) | Taxable | 20% |

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Would you like the exact notification copy (2011 or 2013) that provides exemption to beer sold by retailers?

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