Tamerlane whisky costs vary from Rs 1,300 in Haryana to Rs 3,425 in Karnataka
GS3Economy · S&T · Environment · Security· Fiscal policy, budget & taxation (GST)· Prelims·
Fiscal Federalism and tax harmonization: a GS3 case study on state autonomy vs national tax unity.
Why in news
The wide price disparity of Tamerlane whisky across states (Rs 1,300 in Haryana to Rs 3,425 in Karnataka) highlights the impact of alcohol remaining outside the GST framework.
Background
Alcohol for human consumption is currently excluded from the Goods and Services Tax (GST) in India. In 2024-25, Goa collected nearly Rs 947.9 crore in excise revenue.
Facts for Prelims
- FactTamerlane whisky 750 ml price: Rs 1,300 (Haryana), Rs 1,850 (Delhi), Rs 3,425 (Karnataka), and Rs 1,740 (Goa).
- FactGoa excise revenue in 2024-25: nearly Rs 947.9 crore.
- FactAlcohol for human consumption remains outside the GST framework.
- FactIllustrative breakdown of a Rs 2,000 whisky bottle: Excise duty (Rs 425), Import fee/Custom Duty (Rs 150), Other fee/CST (Rs 10), VAT/Surcharge (Rs 570), and Retail margin (Rs 150).
Prelims practice question
Which of the following categories of goods is currently excluded from the Goods and Services Tax (GST) framework in India?
- (a)Alcohol for human consumption
- (b)Real estate
- (c)Petroleum products
- (d)Gold and jewellery
Show answer
Answer: (a) Alcohol for human consumption — The note specifies that alcohol for human consumption remains outside the GST framework.
For Mains
Q. Discuss the fiscal implications and federal challenges of keeping alcohol outside the GST framework in India.
Dimensions to cover in your answer
- Fiscal Federalism: State autonomy over excise revenue vs. national tax harmonization goals
- Market Distortion: Significant price variance across state borders affecting consumer choice and brand competition
- Revenue Generation: High reliance of state exchequers on alcohol excise despite varying tax structures
Keywords: Fiscal Federalism · GST · Excise Duty · Tax Harmonization · State Autonomy
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.