GST department suggests additional tax on liquor in Maharashtra

The Goods and Services Tax (GST) department of Maharashtra has suggested to raise the tax on alcohol served in those restaurants and lodging facilities in Maharashtra which are having less than three stars.

The proposed hike from the current 5 percent rate for these establishments to 10 to 15 percent will help the state government generate an additional Rs.300 to Rs.600 crore yearly.

Since 2011, there hasn't been a tax rise on alcohol sold in restaurants and hotels with less than three stars, in Maharashtra, according to the state’s GST department. As a result, there is room for an increase.