Andhra Pradesh Government itself turned into a Tax Evader as tweaked the new bar policy to avoid paying 18% GST to the Central Government. The government has decreased the License fee to just 2 Lakhs but will be recovering the remaining amount under non-refundable registration charge.
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The government need not pay GST on this under non-refundable registration charge and this system will help the state government to prevent the loss of revenue. In all the slabs of the license system, the under non-refundable registration charge is several times more than the License fee.
Liquor is Exempt from GST but the state governments are needed to pay GST on the license fees. All the state governments are expected to follow Andhra Pradesh in their liquor policy or otherwise, will have to lose a lot of their revenues due to this new tax which will come into effect on July 1st.
