Disability Pension

Tax on CSD Liquor Exempted in these States

CSD Liquor Tax calculation
Posted on by Editor ESM Info Club

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/UTLiquor
Gujarat, Jharkhand, Bihar, Tamil
Nadu,		Exempted
Andaman10%
Uttar PradeshExempted
West BengalAbolished (20% on MRP is charged as Additional Excise Duty)
Madhya Pradesh5%
Rajasthan3%
KarnatakaExempted
UttarachalExempted
DelhiExempted
MaharashtraExempted
Andhra PradeshUp to basic price of Rs. 500/- per case VAT on liquor exempted and above Rs. 500/- per case 70% VAT applicable.
TelanganaUp to basic price of Rs. 500/- per case VAT on liquor exempted and above Rs. 500/- per case 70% VAT applicable.
Kerala70%
Goa22%
HaryanaExempted
Assam40% on IMFL Rum Exempted
Himachal Pradesh2%
Punjab4.004%
OrissaExempted
Nagaland5%
J&K31.5% (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.		ItemAmount
Rs.
1.MANUFACTURER 
 Selling price of item including profit of manufacturer100.00
 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 depot112.50
 VAT reflected in invoice12.50
 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 depot107.00
 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 URC120.37
 VAT reflected in invoice13.37
 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 URC113.42
 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.

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