Indian Wine Industry

There are many wine production laws in India. India is not customarily a wine drinking nation. The production and consumption of wine in India are almost negligible when compared with various other countries because of restrictions in India and higher price as compared to spirits like brandy and whiskey made in the country. In Maharashtra, there is Champagne Indage’s plant which signifies the production of wine on an organized scale in India. Commercial wine manufacturing is coming into existence in  the1980s in India

The Indian wine industry has been constantly evolving over the past 10 years. Wine is step by step turning into a part of the urban Indian way of life. The import taxes in the nation reduces and also empowering foreign exporters to exploit India’s huge consumer market. Also, The wine market is biting by bit opening up as quantitative limitations are being lifted, import duties are being brought down and domestic regulations are being untangled.

Production Of Wine In India

India has 123,000 acres of vineyards, of which only 1% are utilized for wine production. There were only 6 working wineries when India‘s first winery was set up in the 1980s and 2000. Although, manufacturing is consequently expanded rapidly. It is cresting at approximately 13.0 million liters (1.4 million cases) in 2010 and preceding dropping in 2011 and 2012. There are many wine production laws.

The following are wine companies are presently manufacturing/producing wines in India-

  • Chateau Indage Limited, Pune
  • Sula Vineyards, Nasik
  • Grover Vineyards Limited, Bangalore

Although, there are no official production statistics state excise information with industry estimates give a genuinely dependable sign of recent manufacture/wine production levels. production was 641,000 liters in the financial year 2010/11 and 233,000 liters in the financial year 2011/12. During Indian fiscal year 2010-11, excise data shows that the Karnataka state manufactured 2.9 million liters and Sangli (Maharashtra) shows 3.2 million liters during the financial year 2011-12. According to the Industry survey, the total wine manufacturing is approximately 11.5 million liters in 2012.

Wine Production Laws in India

Customs Duty / Excise Duty

  • It has been expanded from 100% to the most extreme reasonable rate of 150%.
  • India rejected extra excise duty on imported wine and other products. By the following objection by the European Union and the US in the World Trade Organization. So the customs duty has been waived on wine.
  • In 2007, the instruction or education cess applicable to the imports of wine has been rejected

Local Taxes

  • The Central Government of India has witnessed a most extreme state excise in different states which is of 25%.
  • The rate of Import expense for imported wine is Rs.2 for every mass liter in Kerela.  Maharashtra has expelled excise duty on wine.
  • Haryana has lessened the excise duty for wine to Rs.20.50 liter from Rs.32.25 liter per proof liter. Not only this,  it has decreased the export duty to half for the domestic business.

GST

Alcohol and alcoholic products would be taxed at 18% GST rate.

Licenses

Licensing procedure differ state by state. Few states do not allow the sale of liquor. On the other hand, some prohibit the sale of liquor beverages and others have state-run restraining infrastructures that control the distribution of liquor. In general, individuals must have a license to deal with liquor beverages. In some states, licenses are further described to take into consideration things like room service sales of liquor. Licenses are renewed every year and state permitting and distribution structures are depicted in the Table.

Brand/Label Registration

Distributors and importers are mandatory to register themselves and in some cases, label the brand with the state excise department for showcasing the label in the state. The state office charges a fixed registration expense and registration should be renewed each year. In a few states, importers are too required to mention the MRP for the wine at the time of registration.

The state excise office gives guidelines and standards on specific labeling prerequisites for sale at the time of registration. State-specific labeling guidelines may include:

  • Available to be purchased in the state of “___” as it were’.
  • Liquor Consumption is Injurious to Health’ in English
  • Maximum Retail Price (MRP) Rs. “__” only.

Transport Permits

According to wine production laws, subsequent to accepting an order from a licensed purchaser/buyer, the licensed merchant/distributor applies for a transport license from the excise office. Therefore, License and permits are normally issued after payment of sales charge (VAT), state excise tax, and other pertinent taxes.

The Food And Drug Administration (FDA) – Procedure For Obtaining A License To Operate.

According to the new Food Safety Standards Act, wine goes under the food category. As there are worries over quality, they are intending to make licenses compulsory for wineries and wine retailers (shops).

If you want to apply for Food License, you can go with FSSAI Food License.

Related Topic: Licenses required for starting a Tiffin Service of Food in India