The Government of Karnataka on January 09, 2023, issued the draft Karnataka Excise (Excise Duties and Fees) (Amendment) Rules, 2023. The amendment provides that in the case of a Microbrewery, the Excise Duty applicable for twenty-five percent of the annual installed capacity shall be paid along with the licence fee. The next installment of Excise Duty applicable for twenty-five percent of the annual installed capacity shall be paid, when the production of draught beer exceeds twenty-five percent of the annual installed capacity or within the end of December month of the Excise year, whichever is earlier.
In case the production of draught beer exceeds fifty percent of the annual installed capacity, the licensee shall pay Excise Duty for such quantity of excess production of draught beer.
The amendment will come into force with effect from July 01, 2023.
