The Karnataka government has recently introduced significant amendments to the Karnataka Excise (Brewery) Rules, 1967 on August 16th 2024. This update marks an important shift in the regulation of microbreweries within the state. The new rules are called The Karnataka Excise (Brewery)(Amendment) Rules 2024.
1. Overview of the Amendments
The Karnataka Excise (Brewery) (Amendment) Rules, 2024, come into force from the date of their final publication in the official Gazette. These amendments revise definitions, licensing fees, and operational rules for microbreweries in Karnataka. They reflect the state’s commitment to fostering a regulated yet vibrant craft beer industry.
2. Definition of Microbrewery
One of the notable changes is in the definition of a “Microbrewery.” Under the amended Rule 2, clause (o-1), a microbrewery is now defined as:
- A small brewery with an installed capacity not exceeding 3,65,000 litres per annum.
- Located in a space with a minimum built-up area of 6,500 sq. ft.
- Equipped with a spacious dining hall and parking facilities.
- Dedicated to manufacturing and serving Draught Beer on-site.
This definition highlights a shift towards promoting microbreweries with specific infrastructure and operational capabilities, emphasizing a more structured and consumer-friendly approach.
3. Revised Licensing Fees
The amendments also revise the fee structure associated with the licensing of microbreweries. The new provisions under Rule 27-A include:
- License Fee: The fee for both the grant and renewal of a microbrewery license is set at ₹2,00,000 per year.
- Additional License Fee: An extra fee equivalent to 15% of the basic license fee is required.
- Excise Duties: The license holder must also pay the Excise Duty and Additional Excise Duty as prescribed in Rule 2 (1-A) and Rule 2-AAA of the Karnataka Excise (Excise Duties and Fees) Rules, 1968, in advance at the time of license grant or renewal.
These changes are aimed at standardizing costs and ensuring that all microbreweries contribute fairly to the state’s revenue.
4. Renewal of Microbrewery License
Rule 27-B introduces a structured process for renewing a microbrewery license:
- Application Timeline: Licensees must apply for renewal at least one month before the expiry of their current license.
- Late Applications: The Excise Commissioner may accept applications made after the deadline if the applicant provides sufficient cause for the delay.
This provision ensures that license renewals are handled efficiently while allowing some flexibility for unforeseen delays.
5. Additional Dispensing Counters
Under Rule 27-C, microbrewery licensees are now permitted to open up to three additional dispensing counters for serving draught beer. This change is designed to enhance consumer convenience and accessibility, particularly in larger or more popular establishments.
6. Amendments to Form 5
Finally, Form 5 of the Karnataka Excise (Brewery) Rules, 1967, has been updated to replace the word “beer” with “draught beer” wherever it appears. This change aligns the form with the new terminology and focuses on draught beer, reinforcing the distinction from other types of beer.
Date of Commencement : 16th August 2024
Conclusion
The Karnataka Excise (Brewery) (Amendment) Rules, 2024, reflect the state’s evolving approach to managing and promoting its microbrewery sector. By clarifying definitions, adjusting fees, and streamlining processes, these amendments aim to support the growth of local craft breweries while maintaining regulatory oversight. For microbrewery owners and enthusiasts, these changes offer new opportunities and a clearer framework for operating within Karnataka’s dynamic beverage landscape.
