SHASWAT TIWARI, SIDDHANT KISHANPURIA & TAMANNA SINGH

STUDENTS FROM KIIT SCHOOL OF LAW

ABSTRACT

The paper aims to discuss about the human consumption of liquor and revenue generated from it by different States. It compares different taxation policies of the states in India. The study seeks to analyze the variations in tax rates, structures, and policies across different states and their implications for liquor consumption, revenue generation, and socio-economic factors. The research analyzes implementation of old tax regime rates i.e.VAT, excise duty etc. instead of GST rates on consumption of human liquor. The power of State government to deal with liquor while considering the constitutional provisions. The study shows the impact of tax rates on revenue generation and the factors influencing such tax rates. The study explored the revenue generation potential of different tax policies across states. Furthermore, the paper highlights the reasons why liquor used for human consumption was not brought under the Goods and Services Tax. Owing to the research, it also gives a rough sketch of alternative tax policies which could be adopted for taxation on alcohol used for human consumption, which could be used by the various state governments potentially. Through this research paper, we intend to provide valuable insights for policymakers, researchers, and stakeholders involved in shaping effective taxation policies on liquor at the state level in India.

KEYWORDS– Liquor consumption; State taxation rate; GST; Revenue and  State Power.