On the supposed ground of increased input costs following GST, liquor prices in Bengaluru stores rise by 13.28%. The liquor itself does not come under the new taxation regime and any increase in costs is not to be passed on by the manufacturer. Though, since Saturday, liquor stores have been charging Rs 165 for a bottle of beer, against the earlier price of Rs 120, and Scotch at Rs 1,960, against Rs 1,730.
“Liquor sold at retail outlets and elsewhere is not under the ambit of GST and the new taxation system is not linked to the pricing of liquor. The MRP of liquor is subject to excise rules,” said Rajendra Prasad, joint commissioner of excise.
“Traders must sell the drink at the price they used to before July 1. Selling liquor at a price other than MRP is illegal.”
“Some of the retailers are cheating in the name of GST. The excise and legal metrology departments should take note of it and punish them,” said Shivalingaiah, secretary general of Karnataka Brewers’ and Distillers’ Association.
GST or goods and services tax (GST) changed the indirect tax scene of the country from July 1 by subsuming over a dozen of state and central taxes. Since GST is meant to eliminate “tax on tax”, experts say overall tax burden on goods is expected to fall over time.
