Eye share: Advance Ruling on Tax Implications under CBU Model in Liquor Industry

Sep 04,2018

Recently, Karnataka AAR in case of United Breweries Ltd. (TS-294-AAR-2018-NT) held that manufacture of beer by contract brewing / bottling units (CBUs) as per specifications of brand owner, does not qualify as ‘supply of service’ under Heading 9988, therefore, no liability to GST arises on amount retained by CBUs as their profit. However, AAR held that GST is payable by Brand Owner (BO) on “Surplus Profit" transferred by CBU to BO...


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