Chennai, Sep 24
Liquor prices in Tamil Nadu are expected to move upwards, with the government-run Tamil Nadu State Marketing Corporation (Tasmac) preparing for a possible revision in rates.
The move follows the rollout of the revised Goods and Services Tax (GST) regime from September, which has increased the tax burden on packaging and service-related components in the liquor industry.
Although alcohol itself remains outside the GST framework, the changes under GST 2.0 have affected related inputs. Packaging materials such as bottles, caps, labels, and cartons are now taxed at 18 per cent, compared to the earlier 12 to 15 per cent. Similarly, transportation and logistics services have also been brought under the 18 per cent tax bracket.
Since the liquor industry is not permitted to claim input tax credit for goods and services used in alcohol production, these additional levies become a direct cost to manufacturers and distributors.