Jodhpur (Rajasthan) A customer in Jodhpur received the shock of his life after incurring an extra 20% added to the value-added tax (VAT) on beer at a local bar, labeled as a 'cow cess'. The bill, which included corn fritters and six beers at Geoffrey's bar in Park Plaza on September 30, showed an order total of Rs 2,650. After GST, VAT, and the 20% cow cess, the final bill came to Rs 3,262, prompting a wave of online discussions. According to reports, the levy was introduced in 2018 under the Rajasthan Value Added Tax Act, 2003. The then Vasundhara Raje government had extended a 10% surcharge to 20% on various types of liquor, including beer, to support cow shelters and conservation initiatives. The Congress government led by Ashok Gehlot did not change the cess.

Cow Cess Since 2018

The hotel's manager, Nikhil Prem, told NDTV that the charge is not new and has been in effect since 2018.“Whenever we levy 20% VAT on liquor, we also apply a 20% cow cess on the VAT amount. Most hotels call it a surcharge, but we explicitly mention it as cow cess. The funds are deposited online for cow protection and welfare,” he explained. The cess applies only to liquor sales; food items continue to attract only GST. According to Rajasthan's Finance Secretary (Revenue) Kumar Pal Gautam, the cow cess is a surcharge applied whenever value addition occurs on liquor sales.“If a restaurant or bar charges more than the base price for alcohol, VAT is applied on the additional value, and the cow cess is calculated on this VAT,” he said.

Rajasthan allocates over Rs 2,000 crore annually for cow-related schemes, including more than Rs 600 crore for shelters. Officials note that the cow cess contributes to this fund but does not cover the entire expenditure, with government grants supplementing the conservation budget.

MENAFN04102025007385015968ID1110149670