Despite GST exemption, alcohol prices are set to rise, straining the industry. Experts warn the sector needs a clear tax refund system.
The Goods and Services Tax (GST) currently does not apply to alcoholic beverages in India. Bringing liquor under the GST framework would necessitate a constitutional amendment. Despite its exclusion from GST, industry observers anticipate a potential increase in the cost of alcohol products, particularly beer. This expectation has already led to a decline in the share prices of liquor companies, with some experiencing drops of up to 6.4%.
Experts suggest that the alcohol sector could face adverse effects from GST implementation unless a clear mechanism for tax refunds is established. This perspective was highlighted in a report by the Economic Times.
