Rajasthan Bar Bill With 20% Cow Cess On Liquor Goes Viral, Sparks Debate

A customer at a Jodhpur bar was charged an additional 20% 'cow cess' on liquor, reviving public debate after the bill went viral on social media. The tax, which has been in effect since 2018, is levied to support cow protection and shelters across Rajasthan.

Viral Bill from Jodhpur's Park Plaza

The incident came to light after a customer ordered corn fritters and six beers at Geoffrey's bar, Park Plaza, Jodhpur on September 30. The bill amounted to Rs 2,650, but after GST, VAT, and the 20% cow cess, the total came to Rs 3,262.

The explicit mention of the cess as "cow cess" instead of a general surcharge caught public attention, sparking widespread reactions online.

What the Hotel Said

Clarifying the matter, Park Plaza's manager Nikhil Prem told NDTV that this was not a new tax.

"The government notification has existed since 2018. Every time we charge 20% VAT, an additional 20% cow cess is levied on that VAT. This applies only to liquor sales-beer and spirits-not food," he said.

The manager added that the cess is collected transparently and deposited into the government's cow conservation fund.

Value Addition and Taxation

Rajasthan Finance Secretary (Revenue) Kumar Pal Gautam explained that the cess works as a surcharge on VAT whenever liquor is sold at a price higher than MRP due to value addition at hotels or bars.

"If restaurants charge extra for liquor at tables, VAT applies to that value addition, and with it, the cow cess is also levied," he clarified.

The 2018 Notification

The 20% surcharge on liquor was first introduced by the Vasundhara Raje government on June 22, 2018 under the Rajasthan Value Added Tax Act, 2003. It extended an earlier 10% surcharge, bringing foreign liquor, IMFL, country liquor, and beer under the cess to fund cow protection.

The policy continued under the Ashok Gehlot-led Congress government, which spends more than Rs 2,000 crore annually on cow-related grants and subsidies. Of this, over Rs 600 crore goes to cow shelters. Finance ministry officials admit, however, that cess collections alone are insufficient, and additional government outlays are required.