How Much Tax is Applicable on Royal Stag Whisky in Maharashtra, UP, and Karnataka?

In India, the price of alcohol like Royal Stag whisky can vary a lot from state to state. This is mainly because each state has its own tax rules for liquor. These taxes help state governments earn money, but they also make alcohol more expensive for buyers.

Let’s look at how alcohol is taxed in Maharashtra, Uttar Pradesh (UP), and Karnataka, and why the same bottle of Royal Stag whisky costs differently in each state. 

Types of Taxes on Alcohol

Alcohol in India is not taxed under GST (Goods and Services Tax), as per the Indian Constitution. Instead, state governments impose their own taxes such as excise duty, VAT, license fees, and cess on alcohol. This is done for three main reasons:

• To protect state revenue, since alcohol taxes make up a large part of their income.
• To retain control over liquor pricing and taxation, giving each state the freedom to set its own policies.
• To maintain federal fiscal autonomy, allowing states to manage this sensitive area independently.

Alcohol Tax Rates in Different States

Here’s how much tax is charged on alcohol (based on MRP) in each of these three states:

These high taxes make alcohol a big source of income for state governments. The money collected often goes into public services like health, education, and social welfare.

Price of Royal Stag Whisky in a 750 ml Bottle

Due to different tax rates, the price of a Royal Stag 750 ml bottle varies:

• Mumbai (Maharashtra): ₹1,070
• Noida (Uttar Pradesh): ₹680
• Bangalore (Karnataka): ₹1,205

As you can see, the bottle is cheapest in Noida, where even though the tax rate is the highest (69%), the base price set by the state might be lower. Bangalore has the highest price among the three, mainly due to a combination of high tax and state pricing policies.

Read more: Why Tilaknagar Industries Has Become A Stock To Watch in FY2025?

Conclusion

The cost of Royal Stag whisky changes from state to state because of differences in excise duty, VAT, and other state-level taxes. While Maharashtra, UP, and Karnataka all tax alcohol heavily, the final price depends on how each state sets its base price and applies taxes. These taxes not only affect your pocket but also support government services and welfare programs.

So next time you wonder why your whisky costs more in one city than another, you’ll know: it’s all in the taxes!

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.