Amendment to Retail Excise Tax in Andhra Pradesh

On October 15, 2024, the Revenue (Excise) Department of the Government of Andhra Pradesh announced an important amendment regarding the Additional Retail Excise Tax (ARET) on various alcoholic beverages, including Indian Made Foreign Liquor, Foreign Liquor, Beer, Wine, and Ready to Drink varieties.

Key Highlights of the Amendment

1. No Retailer Margin on ARET: The amendment specifies that retailers will not be allowed to apply any margin on the Additional Retail Excise Tax
2. Levy of Additional Tax: For Indian Made Foreign Liquor, Foreign Liquor, Beer, Wine, and Ready to Drink varieties supplied to bar licensees, an additional 20.3% of ARET will be levied based on the issue price.
3. Adjustment for Existing Stocks: In cases where the revised tax structure results in different Maximum Retail Prices (MRPs) for stocks of the aforementioned beverages that are either in depots or in transit as of October 15, 2024, the differential amounts will be collected from licensees. This difference will be adjusted in the form of ARET.

Effective Date: These changes are effective immediately as of October 15, 2024.