Tax On CSD Liquor Exempted In These States

You might have curiosity to know about the amount of Tax imposed on the CSD Liquor you purchase every month. After implementation of GST, w.e.f. 01 July 2017, only VAT on liquor will continue to be loaded, as liquor is outside the purview of GST. In many states , no Tax is levied on CSD Liquor. A list of all States with applicable VAT rate is reproduced here.

State wise VAT levied on Liquor sold at Armed Forces CSD

State/UT	Liquor
Gujarat, Jharkhand, Bihar, Tamil Nadu,	Exempted
Andaman	10%
Uttar Pradesh	Exempted
West Bengal	Abolished (20% on MRP is charged as Additional Excise Duty)
Madhya Pradesh	5%
Rajasthan	3%
Karnataka	Exempted
Uttarachal	Exempted
Delhi	Exempted
Maharashtra	Exempted
Andhra Pradesh	Up to basic price of Rs. 500/- per case VAT on liquor exempted and above Rs. 500/- per case 70% VAT applicable.
Telangana	Up to basic price of Rs. 500/- per case VAT on liquor exempted and above Rs. 500/- per case 70% VAT applicable.
Kerala	70%
Goa	22%
Haryana	Exempted
Assam	40% on IMFL Rum Exempted
Himachal Pradesh	2%
Punjab	4.004%
Orissa	Exempted
Nagaland	5%
J&K	31.5% (Addl Assessment Fee on sale value of Liquor)
Arunachal, Triputa, Manipur, Meghalaya, Mizoram, Daman, Pondicherry, Dadra & Nagar Haveli, Chandigarh, Sikkim	Not Exempted Different Tax rates are applicable in different States/UT

ECHS Guidelines for High Cost Treatment for Exservicemen and Dependents

VAT calculation Method on CSD Liquor

Sl. No.	Item	Amount Rs.
1.	MANUFACTURER
	Selling price of item including profit of manufacturer	100.00
	VAT on selling price @12.5%	12.50
	Selling price inclusive of VAT to CSD depot (1(a) + 1(b))	112.50
2.	CSD DEPOT
	Invoice price at CSD depot	112.50
	VAT reflected in invoice	12.50
	Purchase price of item (2(a) – 2(b))	100.00
	Profit @ 7% at CSD depot on purchase price (7% of 2(c))	7.00
	Selling price of item including profit at CSD depot	107.00
	VAT on selling price at CSD depot (12.5% of 2(e))	13.37
	Selling price inclusive of VAT to URC (2(e) + 2(f))	120.37
	Offset claim by CSD (same as 2(b))	12.50
	Net VAT payable to the Govt. (2(f) – 2(b))	0.87
3.	UNIT RUN CANTEENS
	Invoice price at URC	120.37
	VAT reflected in invoice	13.37
	Purchase price of item (3(a) – 3(b))	107.00
	Profit @ 6% at URC on purchase price (6% of 3(c))	6.42
	Selling price of item including profit at URC	113.42
	VAT on selling price URC (12.5% of 3(e))	14.17
	Selling price inclusive of VAT to customers (3(e) + 3(f))	127.59
	Offset claim by URC (same as 3(b))	13.37
	Net VAT payable to the Govt. (3(f) – 3(b))	0.80

GST – General Stores & AFD Goods

Exemption from GST on supplies (sales) made by CSD to Unit Run Canteen and on supplies (sales) made by CSD or Unit Run Canteens to authorized customers.

Canteen Stores Department is entitled to claim a refund of fifty per cent of the applicable taxes paid by it on all inward supplies of goods received by it for the purposes of subsequent supply of such goods to the Unit Run Canteens or to the authorized customers of the CSD.

50% non refundable GST + 100% Compensation Cess is loaded in selling price.

Information provided here are based on the CSD Manual available in the official website of CSD Dte, IHQ of MoD (Army). Rates and policy subject to change and review by the competent authority from time to time.