Excise Duty

An optimal state policy must go beyond a revenue-hungry, punitive regulatory regime

Delhi government has notified the amendments in the excise rules raising the storage and possession quantity of denatured spirit and enhanced the quota of sacramental wine for religious purposes, officials said on Monday. The upper limit of special denatured spirit that can be stored at licensed premises has been raised from 6,744 kilolitres to 15,000 kilolitres at any given time, said a recent Delhi government notification. The annual authorised possession limit for permit holders has also been increased from 64,000 kilolitres to 120,000 kilolitres. The Delhi Excise (Amendment) Rules, 2025, also revised Rule 20 of the Delhi Excise Rules relating to sacramental wine. Earlier, the Bishop of Delhi was allowed to purchase, transport and possess up to 91 litres of sacramental wine for church use. This limit has now been substantially enhanced to 4,000 litres annually. Under the revised provision, the Bishop of Delhi will be permitted to purchase or import duty-free sacramental wine in

A sharp decline in stock price of ITC has seen ₹75,675 crore market capitalisation erosion of the company in the past four trading days.

From February 1, 2026, cigarettes and tobacco products will be taxed under a new excise framework. The government has scrapped the GST compensation cess and replaced it with a new excise duty,

The Tobacco Institute of India calls on the government to reconsider the steep excise and GST hike on tobacco, warning of hardships for farmers, MSMEs, retailers and a surge in illicit trade

The government said that tobacco products will continue to attract GST but will also be subject to additional excise duty on top of that tax from February 1

Before the latest notification, cigarettes and other tobacco products were taxed under a layered structure combining GST with multiple cesses, including a compensation levy

Manufacturers of chewing tobacco, gutkha and similar products will have to install a functional CCTV system from February 1, covering all packing machines and preserve the footage for at least 24 months, according to a government notification. Such manufacturers will also have to disclose to excise authorities the number of machines and their capacities, and can also claim abatement in excise duty in case a machine is non-functional for a minimum of 15 consecutive days, according to the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules notified by the Finance Ministry. The Rules will apply to manufacturers who pack such goods in pouches. "Those manufacturing in other forms (such as tins) have to pay the applicable duty on assessable value," an FAQ released by the Ministry said. The Ministry, on December 31, 2025, notified the additional excise duties that would be levied on chewing tobacco and related products,

The government on Wednesday notified February 1 as the date from which additional excise duty will be levied on tobacco products, and a new cess on pan masala. The new levies on tobacco and pan masala will be over and above the GST rate, and will replace the compensation cess which is currently being levied on such sin goods. From February 1, pan masala, cigarettes, tobacco and similar products will attract a GST rate of 40 per cent, while biris will attract 18 per cent Goods and Services Tax (GST), according to a government notification. On top of this, a Health and National Security Cess will be levied on pan masala, while tobacco and related products will attract additional excise duty. The Finance Ministry on Wednesday also notified the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026. Parliament had in December approved two Bills allowing levy of the new Health and National Security Cess on pan masa

Minister Nitin Agarwal outlines how state's quadrupled excise revenue and robust infra are catalysing industrial investment and helping it to become a developed state

Retail privatisation, wider brand access and transparent rules are lifting volumes and drawing major players back to the state

The government is likely to introduce two bills in the Lok Sabha to replace GST compensation cess with another levy, to ensure that the tax incidence remains the same on tobacco, pan masala and other sin goods after discontinuation of the cess. The Central Excise Amendment Bill, 2025, and The Health Security se National Security Cess Bill, 2025, are listed for introduction on Monday by Finance Minister Nirmala Sitharaman. According to sources, the Central Excise Amendment Bill, 2025, will replace GST compensation cess on tobacco by levying excise duty on tobacco. The 'Health Security se National Security Cess Bill, 2025', will replace the compensation cess on pan masala. It seeks to "augment the resources for meeting Security expenditure on national security and for public health, and levy a cess for the said purposes on the machines installed or other processes undertaken by which specified goods are manufactured or produced". Currently, Goods and Services Tax (GST) at 28 per cent

With rise in liquor sales, the Delhi government has registered over 12 per cent growth in excise revenue collection in the first half of the current financial year as compared to the same period last year, officials said on Saturday. As per official figures, the excise revenue including value added tax (VAT) was Rs 3,731.79 crore during April-September 2024-25. It grew to Rs 4,192.86 crore in the first half of the current financial year. The excise revenue of the first half of 2025-26 is likely to rise further with updates as VAT figures were available up to September 16 only, said an excise department official. "The rise in sale has led to crossing the half mark of excise revenue target of Rs 6,000 crore in 2025-26. With festival season kicking in, peak in sales around Diwali and New Year will hopefully help crossing the annual target," the official added. According to data, the cumulative monthly excise receipts (excluding VAT) in April-September 2024-25 were Rs 279.81 crore. It

The issues of unchanged excise tax rates and maximum retail prices (MRP) of liquor in Delhi were discussed in a meeting of the PWD minister Parvesh Verma-led committee on Friday, sources said. The committee is tasked with preparing the draft of a new excise policy. Delhi loses revenue to NCR cities, including Ghaziabad and Nodia (in UP) and Faridabad and Gurugram (in Haryana), due to lower excise tax rate and MRPs, sources said. "The excise tax rate in Delhi has not been revised since 2014, and the MRP was last updated three years ago. A revision in these two will help to tap the full potential of the retail liquor trade in Delhi and generate more revenue for the government," an official source said. Chief Minister Rekha Gupta earlier said that her government was working to form a new "transparent, socially responsible" excise policy that would also help in generating more revenue for the government. Sources said that the draft of the new excise policy is likely to be ready in a .

Maharashtra's new excise policy raises spirits prices and introduces grain-based liquor; industry groups await clarity while brewers welcome beer tax exemption

United Spirits and Allied Blenders led a selloff in alcohol beverage makers on reports that the Maharashtra government approved a hike in excise duty

Maharashtra hikes excise duty on Indian-Made Foreign Liquor (IMFL) and country liquor, introduces new Maharashtra-Made Liquor category; state expects ₹14,000 crore in revenue boost

The Haryana government has decided to increase excise duties on Indian-Made Foreign Liquor and country liquor by 5 per cent to 10 per cent

The Delhi High Court on Monday will hear petitions by AAP leaders Arvind Kejriwal and Manish Sisodia against the trial court's decision to take cognisance of the Enforcement Directorate's charge sheet filed in alleged excise policy scam. The petitions, filed in 2024, are listed for hearing before Justice Ravinder Dudeja. According to the former Delhi chief minister, the special court took cognisance of the charge sheet filed in a money laundering case linked to the scam in the absence of any sanction for his prosecution, which was required as he was a public servant when the alleged offence was committed. Similar objections have been raised by the former deputy chief minister as well. Sisodia said in his petition that since the allegations against him related to official acts carried out by him as a public servant, prior sanction to prosecute was required. Besides seeking to set aside the trial court's order, Kejriwal has also sought quashing of all proceedings in the case. The hi

The excise duty on petrol was increased to Rs 13 per litre and that on diesel to Rs 10, according to an official order