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The Rekha Gupta-led Delhi government has decided to amend existing excise norms to increase the limits applicable to the storage and possession of special denatured spirits in the national capital. According to an official notification for the Excise (Amendment) Rules, 2025, there is a significant increase in the storage limit applicable to special denatured spirits -- ethanol or rum mixed with specific chemicals to make them unfit for consumption.

As per the proposed changes in Form P6, the upper limit to store such substances in a premises has been raised to 15,000 kilolitres from 6,744 kilolitres at a given time. The form governs permits related to special denatured spirit under Rules 33 and 78.

A separate limit applicable to the possession limit for permit holders is now raised to 1,20,000 kilolitres from 64,000 kilolitres.

Amending Rule 20 of the Delhi Excise Rules, 2010, the UT government has expanded the permissions granted for sacramental wine in churches.

Under the revised provision, the national capital's Bishop will now be allowed to purchase or import, transport and possess duty-free sacramental wine up to 4,000 litres annually, whether through a single permit or multiple permits. Until now, this limit was placed at 91 litres.

The new norm also enables sourcing from any authorised distillery in the country, with the Excise Commissioner’s prior approval.

Here are answers to a few frequently asked questions (FAQs) on the subject:

What is excise duty? What does it determine?

Excise duty is an indirect tax that is levied on goods manufactured within a country or region.

This levy is collected at the point of production rather than sale.

The levy impacts the price that the end-user pays for the goods.

Who is responsible for paying excise duty?

The responsibility of meeting the excise obligation lies with the manufacturer.

However, the cost is usually passed on to consumers through pricing.

Is excise duty still applicable in the country after GST?

Yes. It is applicable to select products such as fuel and sin goods like consumable alcohol and tobacco products.

Is excise duty different from GST?

Yes.

Excise duty is charged on manufacturing.

GST is a destination-based tax levied on supply and consumption.

Does excise duty impact retail prices?

Yes.