In exercise of the powers conferred under Section 7(2) of the CGST Act, 2017, the CBIC has issued Notification No. 25/2019-Central Tax (Rate) dated September 30, 2019, to notify that the following activities or transactions are undertaken by the State Governments in which they are engaged as public authorities, shall be treated neither as a supply of goods nor a supply of service:-
“Service by way of grant of alcoholic liquor licence, against consideration in the form of a licence fee or application fee or by whatever name it is called.”
The Notification can be accessed at: http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-25-2019-cgst-rate-english.pdf;jsessionid=865D6C0F253DB747A05E80B23D7B32AD
Note:
Similar Notifications has been issued under the IGST act and UTGST Act vide Notification No. 24/2019-Integrated Tax (Rate) and Notification No. 25/2019- Union Territory Tax (Rate) both dated September 30, 2019