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.
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.
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
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:
---
### 🥂 **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.
---
### 🍽️ **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.
---
### 📄 **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.
---
### ✅ 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% |
---
Would you like the exact notification copy (2011 or 2013) that provides exemption to beer sold by retailers?
Let’s break it down:
---
### 🥂 **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.
---
### 🍽️ **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.
---
### 📄 **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.
---
### ✅ 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% |
---
Would you like the exact notification copy (2011 or 2013) that provides exemption to beer sold by retailers?
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