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Liquor and GST in India
May 7 , 2020
1584 days
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- The states in general impose heavy excise duty on liquor.
- The Delhi Government imposed 70% hike as Special Corona Fee in liquor prices.
- Uttar Pradesh imposes “special duty on liquor” and uses the funds collected to maintain stray cattle.
- The state of Tamil Nadu imposes VAT (Value Added Tax) on liquor
- The sale of liquor has been banned in the states of Gujarat and Bihar,
- In all other states, liquor contributes certain amount to the exchequers.
- The State Excise duty is levied on liquor.
- According to the report of Reserve Bank of India called "State Finances: A study of Budgets of 2019-20", the excise duty on alcohol accounts to 10% to 15% of the state revenue of majority of the states.
- It is the second or third largest contributor to states revenue.
- This was the main reason the state governments wanted liquor to be kept out of GST.
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