Jharkhand outlines process for determining retail liquor price

In a move to ensure greater transparency and consistency in pricing, the Jharkhand government has detailed the step-by-step procedure for determining the Retail Sale Price (RSP) of liquor under the Jharkhand Excise (Settlement and Operation of Shops for Retail Sale of Liquor) Rules, 2025.

The process begins with the supplier company submitting brand-wise EDP (Ex-Distillery Price), EWP (Ex-Warehouse Price), or EBP (Ex-Brewery Price). Based on these submissions, excise revenue is calculated in accordance with Rule 25. This excise revenue is split into two parts: 10 percent is allocated as Excise Duty and 90 percent as Excise Transport Fee.

Subsequently, excise duty is added to the submitted price, and VAT is applied—5 percent for foreign liquor and 1 percent for country liquor. A wholesale profit margin is then included—4.5 percent for foreign liquor and 3 percent for country liquor. These figures, along with the Excise Transport Fee, are combined to determine the “Cost to Retailer.” To this base, a 12 percent profit margin is added for retail licencees. Then, a cumulative value is formed by adding the Excise Transport Fee, wholesale margin, and retail margin, which is reviewed further for verification and tax compliance.

The final RSP per case is computed by summing the cost to retailer, retail profit margin, and VAT payable by the wholesaler. This case-wise price is then divided by the number of bottles in the case to derive the retail price per bottle, which is rounded off in line with Rule 2000 of the 2005 Excise Rules. Additionally, as per Rule 2(o), applicable “Arika” cess must be paid by the retail licencees to ISACL.

The entire pricing mechanism ensures that the final price, inclusive of VAT, is paid to Jharkhand State Beverages Corporation Ltd. (JSBCL) in accordance with the statutory framework.

You can view the official notification from the Jharkhand Government here.