Gross sales are the total of all of the sales for the month reported on the return.
The sales price of an alcoholic beverage is the total price for which the drink is sold and includes the alcoholic beverage tax, applicable sales tax (both state and local) and the cost of any services required to process the beverage for sale without any deductions for the cost of the beverage, the cost of the materials used, losses or any other expenses. To read more about this, please see TENN. COMP. RULES & REGULATIONS 1320-4-2-.01 (7).
Both sales tax and liquor tax must be included on line three (gross sales) of the alcoholic beverages for the consumption on the premises (liquor-by-the-drink tax) return, in order to avoid understating the liquor tax due.