A day after the excise policy for financial year 2024-25 was approved by the Yogi government, officials clarified that the prices of country-made liquor will not go up from April 1, 2024.
Though the department has increased duty on UP countrymade liquor to Rs 254 per bulk litre, officials said the hike would not pinch consumers as the GST on distilled alcohol would not be levied by the central government anymore.
“The increase in excise duty on country-made liquor would be offset by the gains made through GST exemption,” a senior officer said. In the 52nd GST Council meeting on October 7, the central government had announced that extra neutral alcohol manufactured for industrial purposes would continue to attract 18% GST while the one manufactured for liquor for human consumption would be outside the purview of GST. Similarly, the council also reduced GST on molasses from 28% to 5%.
Excise commissioner Senthil C Pandian said that the state government was striving to promote grain-based liquor instead of the one produced through molasses.
“Grain-based liquor is of the highest quality and better than molasses-based liquor. Local produce would be used, and distilleries will not need to procure grain from other states,” Pandian said.
Officials claimed that the price of countrymade liquor would remain unchanged. “We expect price of the 42.8% UP liquor category will come down by Rs 5 in the changed scenario,” an officer said. Country-made liquor generates highest revenue for the state government.