IMPORT OF ALCOHOLIC LIQUOR INTO INDIA

[Raghunandhaanan rvi]

Our client wants to import Alcoholic liquor into India for warehousing in FTWZ and subsequently export it and dispatch it to different states based on the state excise permit.  My queries are as follows: 

1. Is there any prohibition on importing this item into FTWZ?

2. Is IGST payable on this import? If yes, under which Notification?

Thanks in advance for your expert opinion on these. 

[Sadanand Bulbule]

Free Trade Warehousing Zone [FTWZ Units] operations are governed under the SEZ Act, 2003. In my understanding, potable Alcoholic bewrages for human consumption are generally "prohibited itmes". So unless you obtain the specific FTWZ Board of Approval [BoA], such goods are not allowed under FTWZ operations. Consult the DGFT office for precise clarification.

 In terms of Section 9[1] of the CGST Act, 2017, Alcoholic liqour for human consumption is outside the domain of the GST regime.

[YAGAY andSUN]

1. Prohibition on Importing Alcoholic Liquor into FTWZ

There is no specific prohibition on importing alcoholic liquor into an FTWZ under current customs or foreign trade laws. However, the following conditions apply:

• FTWZ operations are governed by the SEZ Act, 2005 and SEZ Rules, 2006, which allow import of goods (including alcoholic beverages) for warehousing and trading purposes.
• As per the Foreign Trade Policy and the ITC (HS) classification, alcoholic liquor is generally categorized as “Free” for import, subject to compliance with regulatory requirements including:
  • Import license from DGFT;
  • FSSAI clearance, where applicable;
  • Labelling norms and packaging compliance;
  • Any other applicable statutory approvals.
• Movement from FTWZ into Indian states (DTA) will require State Excise permissions, and duties will be applicable as per individual state excise laws.

Conclusion: Import into FTWZ is allowed, subject to regulatory approvals. DTA clearances are governed by State Excise regimes.

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2. IGST Applicability on Import into FTWZ

Under the GST framework:

• Section 9(1) of the CGST Act, 2017 specifically excludes alcoholic liquor for human consumption from the scope of GST. Hence, IGST is not applicable on its supply.
• Further, Section 53 of the SEZ Act, 2005 treats FTWZ as outside the customs territory for trade purposes, so no customs duty or IGST is payable at the time of import into FTWZ.
• When goods are cleared into the Domestic Tariff Area (DTA), State Excise Duty, not IGST, will apply, as per the respective state’s excise policy.

Conclusion: IGST is not payable either at the time of import into FTWZ or at the time of DTA clearance. State Excise Duties and permits will apply upon domestic movement.

[YAGAY andSUN]

May be useful for your.

Instruction No. 19/2025-Customs Dated 20-06-2025

 

[YAGAY andSUN]

Food Safety and Standards Authority of India

(A Statutory body under Ministry of Health & Family Welfare, Government of India)

(Trade and International Cooperation Division)

FDA Bhawan, Kotla Road, New Delhi-110002

Dated 13th  June, 2025

ORDER

Subject: Extension of validity of the NOC for the Alcoholic Beverages Bottled in Origin & in Bulk-reg.

In exercise of the power conferred under regulation 14 (2) of Food Safety and Standards (Import) regulation 2017, for extension of validity of the NOC for the Alcoholic Beverages Bottled in Origin & in Bulk, it has been decided that for the imported consignments of alcoholic beverages bottled in origin & in bulk, containing more than 10 percent alcohol, which does not have an expiry date, the NOC issued as per the FSS (Import) Regulations, 2017 shall have a validity of 365 days. For consignments lying at ports Customs area beyond 365 days, on payment of visual inspection fee, visual inspection may be carried out for re- validation.

2. The revision in the validity of NOC for Alcoholic Beverages is done to facilitate ease of doing business while ensuring the safety of food imported into India. This office order supersedes previous order/direction issued in this regard.

3. This issues with the approval of the Competent Authority.

Yours sincerely,

(Manvesh Kumar, IRS)

Director (Imports)

[email protected]

[Sadanand Bulbule]

Dear Yagay & Sun

Thanks for providing additional & relevant inputs.

[Sadanand Bulbule]

 For academic purpose, refer the following for more on FTWZ operations and GST implications:

2025 (1) TMI 580 - AUTHORITY FOR ADVANCE RULING, TAMILNADU IN RE: M/S. HAWORTH INDIA PRIVATE LIMITED

[Raghunandhaanan rvi]

Dear

Mr. Sadanand & YAGAY, And SUN

Thank you very much for your detailed information, which has been very helpful in advising my client.

Thanks You 

Once Again.

[Thanzeena Sakkir Husain]

Dear Mr. Raghunandhaanan, i would liek to connect with you regarding the same topic, kinldy contact me at [email protected]

Thankyou.

[Raghunandhaanan rvi]

Ok sir.

My e. Mail id is rviraghunandhaanan@gmail

Com

AI Summary

Import of alcoholic liquor into FTWZ: allowed with regulatory approvals; IGST generally not payable, state excise applies on DTA. Advisory responses differ: potable alcoholic beverages may be regarded as prohibited in FTWZs absent specific Board approval, while alternate advice states import into FTWZ is allowed subject to DGFT, FSSAI and other statutory approvals. Movement into the Domestic Tariff Area requires state excise permissions and duties. Under the tax and SEZ regime, alcoholic liquor for human consumption is outside GST and IGST is not payable on import into FTWZ; DTA clearances attract state excise duties rather than IGST. Administrative notices cited include a customs instruction and an FSSAI NOC validity order.