Jammu, February 11, 2026 — The Government of Jammu and Kashmir has officially notified the Excise Policy 2026-27 (S.O. 37), which will come into force from April 1, 2026, and remain valid till March 31, 2027. The policy, issued under the J&K Excise Act, Svt. 1958, aims to balance revenue generation, public health, tourism promotion, and curbing of illicit liquor trade.
Policy Objectives
The policy outlines eight key objectives:
- Promote social awareness about the harmful effects of alcohol and drug abuse.
- Encourage a shift from high-alcohol to low-alcohol content beverages.
- Rationalise taxes, duties, and levies to optimise government revenue.
- Check bootlegging and smuggling from neighbouring states/UTs.
- Provide consumers wider choice of brands and ensure a level playing field for stakeholders.
- Rationalise production and sale of JK Special Whisky and JK Country Liquor to curb illicit distillation.
- Tap the full potential of the existing liquor industry to promote ancillary units and generate employment.
- Achieve complete digitalisation of the entire liquor supply chain — from production to retail consumption.
Major Highlights & New Provisions
- Extended serving hours: Hotels and social occasions can serve liquor beyond regular timings on payment of ₹3,000 per hour per occasion.
- Rooftop/Terrace/Balcony service: Type-B licensees (hotels, bars) in Jammu and Srinagar Municipal Corporations can serve liquor on rooftops/terraces subject to strict safety conditions (minimum 6-ft high fencing, no visibility to surroundings, life-saving equipment near water bodies, etc.).
- Low-alcohol promotion: New licences for retail sale of Beer and RTD in JKTDC, tourism establishments, airports, and tourist areas to encourage low-alcohol consumption.
- Penalty for unauthorised serving: Commercial establishments (banquets, hotels, restaurants, clubs) serving liquor on social occasions without permission will face penalties starting at ₹30,000 (1st offence), escalating to ₹50,000 (2nd) and ₹1 lakh thereafter.
- Anti-monopoly measure: Manufacturing units (distilleries, breweries, bottling plants, wineries) are now ineligible to hold Type A, B, or C licences.
- RTD Production: Permission granted to D-2 and JKEL-6 units to manufacture Ready-to-Drink beverages on payment of ₹20,000 annual fee.
- Export push: Concessional bottling fee of ₹2 per bottle/BL for exports; processing and maturation of special spirits encouraged.
Retail Vends (JKEL-2) – No New Shops
Consistent with the government’s stand in the Legislative Assembly, no new JKEL-2 liquor shops will be issued in 2026-27. Existing vends will be allotted through e-auction on https://jkexcisedept.procure247.com.
Key changes:
- Only one vend per successful bidder to prevent cartelisation.
- Strict eligibility: J&K domicile, minimum 21 years, clean criminal record, immovable property worth up to 100% of reserve price (or 50% + Bank Guarantee).
- Participation fee: ₹75,000 (non-refundable).
- Earnest Money Deposit: ₹10 lakh per vend.
- Mandatory digital payments (UPI, cards), CCTV cameras (15-day backup), and anti-drink-drive signboards.
- Green initiative: Licensees must place dustbins inside/outside vends.
Revenue & Duties (Key Rates)
- Excise Duty on IMFL ranges from ₹261–300 per LPL depending on segment.
- Additional Assessment Duty (AAD): 40% of MRP for most liquor (10% for BIO, RTD, Wine & Cider).
- Import Duty on IMFL: ₹49 per 750 ml bottle.
- Ban on cheap IMFL imports: Brands with MRP ≤ ₹600 per 750 ml bottle cannot be imported to protect local industry.
- All locally manufactured IMFL (except BIO) must be ENA-based.
Social Responsibility & Other Measures
- Licensees (Type A, B, C & F) must contribute monthly to the Social Responsibility Corpus Fund (₹1,500–₹3,500) for awareness campaigns, de-addiction, and youth sports.
- Rewards for informants on illicit distillation, smuggling, and drug-related activities.
- Full rollout of e-Abgari platform for online permits, payments, and Track & Trace system.
- Flow meters made mandatory in bottling plants.
The policy continues the government’s focus on responsible regulation while boosting revenue (which crossed ₹2,152 crore in the last two years from auctions) and supporting tourism. Chief Minister Omar Abdullah has repeatedly ruled out prohibition, citing risks of black marketing and loss of revenue.
→ UP Begins Preparations for Excise Policy 2027-28, Stakeholder Meetings from September 28→ Supreme Court Says Alcohol Prohibition Does Not End Alcoholism, Cites Gujarat’s Hooch Tragedies
This policy update is expected to guide stakeholders in the excise and alco-bev industry for the coming year, ensuring compliance, revenue stability, and responsible regulation.
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