GST won’t affect CSD liquor rates
Vijay Mohan
Tribune News Service
Chandigarh, June 18
As defence canteens rework their price lists and accounting procedures with the introduction of Goods and Services Tax (GST), there will be no change in the existing rates of liquor sold through the Canteen Stores Department (CSD).
“As liquor is outside the purview of GST, unit run canteens (URCs) will continue with the existing system for sale of liquor,” an advisory issued on June 16 by Army Headquarters on the implementation of GST states.
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Taxes and local levies on liquor sold through the CSD depend upon the excise policy of the respective state in which the CSD outlet is located. Tax concession is the prerogative of the state governments and CSD liquor rates vary from state to state.
The Union Government has granted 50 per cent exemption on GST to supplies made to CSD depots by commercial companies and vendors. Since GST will be levied at the time of wholesale purchase by depots, URCs will not be required to levy GST on sale of goods to the end customers and consequently, URCs are exempted from registration for GST or filing monthly returns.
The CSD has 33 depots across the country, which service over 3,500 URCs co-located with defence establishments, many of which are in remote areas. Set up as a welfare measure, these sell a wide variety of items to defence personnel such as daily provisions, cosmetics, household goods, consumer items and vehicles.
According to the advisory, old stocks held by CSD outlets till June 30, 2017, will be sold at old rates even after July 1, 2017, the date of implementation of GST regime nationwide. Only goods procured by depots on or after July 1 will attract revised rates. A new software is being prepared for billing process in the GST environment.
