A licensed bar and restaurant handles two tax systems on one table. Food, soft drinks and mocktails are restaurant service under SAC 996331, taxed at 5% without input tax credit for a stand-alone outlet. Alcoholic liquor for human consumption is outside GST and carries state VAT under the excise and VAT laws. The bill must keep the two apart, with separate subtotals and tax sections, and should show the bar licence number alongside the FSSAI number and GSTIN.
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Extra fields a bar and restaurant invoice needs
Separate GST and VAT sections
The single most important feature of a bar bill. Food and non-alcoholic drinks are totalled and taxed under GST; liquor is totalled and taxed under state VAT. One combined tax line is wrong under both laws.
Bar or excise licence number
State excise rules usually require the licence category and number on bills for liquor. Printing it also reassures guests that the outlet is licensed to serve the drinks listed.
VAT registration number
Because liquor sales are reported in the state VAT return, the bill should carry the outlet's VAT or TIN number in addition to the GSTIN used for the food section.
Peg size or bottle volume
Liquor is priced and controlled by measure, such as 30 ml or 60 ml pegs or full bottles. Showing the measure supports excise stock registers and avoids complaints about short pours.
Happy hour or offer description
Bars run time-based offers. Recording the offer on the bill explains the reduced price and ensures the discount is applied to the correct section, GST or VAT, rather than spread across both.
Table and steward
Bar tabs run long and are often transferred between tables. A table and steward reference makes it easier to resolve disputes over who ordered which round.
Standard GST invoice fields
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
✓Supplier name, address and GSTIN
✓Consecutive invoice number (max 16 characters, unique for the year)
Article 366(12A) of the Constitution defines GST to exclude the supply of alcoholic liquor for human consumption, so states continue to levy VAT on it. A bar must not charge CGST or SGST on whisky, beer or wine, and equally must not charge VAT on the paneer starter. The practical answer in most billing systems is a split bill: a GST bill for food and soft beverages under the restaurant's GSTIN, and a VAT bill for liquor under its state VAT registration, both linked by the same table or order number.
Food rate does not change because the outlet has a bar
Before November 2017, restaurants with a liquor licence paid a higher GST rate on food. That distinction was removed, and today the rate depends on location: a stand-alone bar and restaurant charges 5% without input tax credit on food, while an outlet inside specified premises charges 18% with credit. Having a bar licence alone does not take the restaurant into the 18% category, and a stand-alone outlet cannot declare itself specified premises.
Input tax credit and the mixed business
Because the food side pays 5% without credit and the liquor side is non-GST, a typical stand-alone bar has very little credit to claim. GST paid on furniture, sound systems, rent and glassware is generally a cost. Where an outlet also earns income taxable with credit, such as hosting paid events or renting space, any credit claimed must be apportioned under rules 42 and 43 between taxable-with-credit, exempt and non-GST turnover.
Cover charges and entry fees
Some bars charge a cover that can be redeemed against food and drink. The GST treatment depends on what the cover buys: if it is adjusted against the bill, apportion it between the food and liquor sections; if it is a separate entry fee for an event or performance, it may be a different service with its own rate. Write the terms of the cover on the bill so the tax treatment can be explained to an auditor.
Common billing mistakes
✕Charging 5% GST on beer and spirits along with the food, instead of state VAT on liquor.
✕Applying 18% on food because the outlet holds a bar licence, although it is not in specified premises.
✕Claiming input tax credit on the bar counter and glassware against a 5% output that does not allow credit.
✕Applying a flat bill discount to the grand total without splitting it between the GST and VAT sections.
Bar and Restaurant GST invoice: FAQ
Can one bill show both GST and VAT?
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Yes, provided the two sections are clearly separated, with their own subtotals and tax lines. Many outlets prefer two linked bills, which makes it easier to file the GST and VAT returns.
What is the GST rate on food in a bar?
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For a stand-alone bar and restaurant, food and non-alcoholic beverages are taxed at 5% without input tax credit. Only outlets located in specified premises charge 18% with credit.
Is GST charged on a mocktail?
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Yes. A mocktail or soft drink served at the table is part of the restaurant service and is taxed at the same 5% as food. Only alcoholic liquor for human consumption is outside GST.
Does liquor turnover count toward the GST registration threshold?
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Aggregate turnover includes exempt and non-taxable supplies, and non-GST supplies such as liquor are counted in some calculations. Ask your accountant how it affects your thresholds and composition eligibility, since non-taxable supplies can also bar composition.