Which tax is applicable on alcohol in India?

What is the tax on liquor in India?

State excise duty levied on liquor and other alcohol-based items make up for 10-15 per cent of Own Tax Revenue of many states. After GST, excise duty on liquor is the second or third largest contributor to the State’s Own Tax Revenue.

Which type of tax is charged on alcohol?

One type of tax or duty that by law must be paid by some industries is excise tax (sometimes inappropriately called “sin tax”). Excise tax, which is usually increased every year, is a special duty imposed on items that can cause harm to people, such as alcohol, tobacco, sugar and fuel.

Is alcohol taxable under GST?

Currently, alcohol for human consumption or potable alcohol is out of the ambit of GST and states are free to levy taxes on them. However, industrial alcohol is within the Goods and Services Tax (GST).

What is the rate of GST on alcohol in India?

Alcohol is currently outside the purview of GST.

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Which state has highest tax on alcohol in India?

The northern state of Uttar Pradesh made the highest estimated revenue from excise duty on alcohol at about 315 billion Indian rupees across India in financial year 2020. Karnataka ranked second that year, followed by Maharashtra.

What is the tax on Whisky in India?

While the budget has reduced basic customs duty on liquor to 50% from 150%, it would be offset by the agricultural infrastructure cess of 100% imposed on tipple. The new cess is only applicable on hard spirits such as Scotch, whisky, rum and vodka, and not on foreign beer which at present attracts 110% tax.

What is the tax on a bottle of whiskey?

Its figures said that the 74% tax (VAT and excise duty) on Scotch Whisky is based on an average selling price of £14.15 for a 70cl bottle (as at June 2018) in the off-trade. Of that, excise forms £8.05 and VAT forms £2.36 with total tax on a bottle at £10.41.

How much is tax on whiskey?


GST HSN chapter code 2207 Ethyl alcohol and other spirits, denatured, of any strength.

How is wine taxed?

US federal wine excise rates are (as of January 1st 2020): $1.07 per gallon for wine with between 0.5% and 14% ABV. $1.57 per gallon for wine with between 14% and 21% ABV. $3.15 per gallon for wine with between 21% and 24% ABV.

Why is alcohol not charged on GST?

Alcohol was not brought under the purview of GST regime primarily due to two reasons: To ensure that the State Governments continue to have a strong inflow of revenue (other than what they get from GST). It’s estimated that taxes on liquor and beer fetch the state governments nearly INR 90,000 crores annually.

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Is there GST on wine?

The amount of WET payable is 29% of the whole sale of wine whereas GST is 10% of your purchases and sales of goods. … Grape wine and grape wine products (Including sparkling and some fortified wine). • Fruit wines and vegetable wines.

Is petrol exempted from GST?

The GST Council has decided to report back about it to the court. At present, Crude Oil, Natural Gas, Diesel, Petrol, and Aviation Turbine Fuel are out of the GST umbrella.

Is VAT still applicable in India?

As a taxation concept, VAT replaced Sales Tax. … On 2nd June 2014, VAT was implemented in all states and union territories of India, except Andaman and Nicobar Islands and Lakshadweep Islands. For interstate supplies, CST or Central Sales Tax was imposed. CST applies on the sale of goods levied by the Central Government.