AIBA’s Advocacy & Achievements

Advocacy & Achievements

Since its inception, the All India Brewers Association (AIBA) has consistently championed the interests of India's organised beer industry through constructive engagement with Governments, regulatory authorities, judicial forums and industry stakeholders. The Association has played a pivotal role in addressing policy, taxation, regulatory and technical issues that directly impact the beer sector.

The following are some of AIBA's significant interventions and achievements:

Odisha (2016–17 onwards)

Odisha has historically been one of the most challenging States for the brewing industry.

  • Successfully represented the industry against the arbitrary 20% reduction in Ex-Brewery Prices (EBP) imposed by the State Corporation
    during 2016–17.
  • Opposed the simultaneous 20% increase in Excise Duty and the requirement that breweries absorb the enhanced Bottling Fee without any corresponding increase in EBP.
  • Challenged the policy through judicial proceedings, resulting in court adjudication. The pricing issue continues to remain under legal consideration.
  • Continuously represented the industry against the escalating Bottling Fee introduced from 2015–16 onwards, which has increased year after year and continues to impose a substantial financial burden on breweries.

Maharashtra

  • Through sustained dialogue with the State Government, AIBA successfully ensured no increase in Beer Duty during FY 2015–16 and 2016–17.
  • When Beer Duty was significantly increased during 2017–18, causing the retail price of a standard beer bottle to rise from approximately ₹140 to ₹192, AIBA made detailed representations to the Government.
  • As a result of continued engagement, the State Government rationalised the tax structure within approximately three months, bringing the retail price down to around ₹157, thereby reducing the burden on consumers and the industry.
  • Successfully challenged the mandatory requirement for embossed slogans on glass beer bottles before the Bombay High Court and obtained interim judicial relief.

West Bengal

  • Effectively represented the industry regarding the proposed online barcode-based Track & Trace system for beer, ensuring practical implementation concerns were addressed.
  • Following the unprecedented increase in Beer Duty in January 2018, which increased the MRP of a standard beer bottle from approximately Rs.120 to Rs.172, AIBA pursued sustained representations with the State Government.
  • These efforts resulted in moderation of the retail price to approximately Rs.150, substantially reducing the impact of the duty increase.

Andhra Pradesh

  • Successfully advocated for the continuation of the Private Retail Model during the 2015–16 policy transition, enabling continuity of private retail operations during a critical period.

Himachal Pradesh

  • Track & Trace Implementation
    • AIBA successfully represented before the Excise Commissioner, Himachal Pradesh, regarding the impractical requirement of affixing Track & Trace barcodes on individual beer bottles and cans at the L-1B depot. The Association highlighted the significant operational and logistical challenges associated with implementing this provision at the depot level. Through sustained dialogue and repeated representations, the Excise Department appreciated the industry’s concerns and provided appropriate relief by rationalising the implementation requirements.

GST on Government Fees

  • Represented the industry before the GST Council regarding the proposed levy of GST on Government Fees.
  • Submitted detailed representations highlighting the legal distinction between statutory Government levies and taxable services.
  • Following these representations and changes in nomenclature by certain States, it was clarified that GST was not leviable on Government Fees.
  • Economic Laws Practice (ELP) acted as legal advisors during this initiative.

Supreme Court Highway Liquor Ban

  • Following the Hon’ble Supreme Court’s judgment prohibiting the sale of alcoholic beverages within 500 metres of National and State Highways, AIBA worked closely with Economic Laws Practice (ELP) and various State Governments.
  • Assisted six States in preparing legal grounds for review petitions before the Hon’ble Supreme Court.
  • The collaborative effort resulted in practical implementation guidelines and relief for several States.

FSSAI & Technical Regulatory Contributions

Following the implementation of the Food Safety and Standards Act, alcoholic beverages came under the jurisdiction of the Food Safety and Standards Authority of India (FSSAI). AIBA has been actively associated with the development of India’s technical standards for beer since 2015.

Major contributions include:

  • Worked extensively with FSSAI Scientists, Technical Committees, CII and industry experts between 2016 and 2019 in framing India’s Beer Standards.
  • Contributed towards harmonising Indian Beer Standards with internationally accepted Codex Alimentarius and European Standards.
  • Assisted in developing common technical standards that are now notified and accepted by the industry.
  • Continued engagement on harmonisation of regulations relating to colours, processing aids and enzymes.
  • Successfully represented the industry on Beer Labelling Guidelines, leading to resolution of several key issues, including “Best Before” and “Use By” declarations.
  • Worked jointly with FSSAI and the Department of Legal Metrology to harmonise Font Size requirements and Principal Display Panel norms, thereby resolving conflicts between two statutory regulatory frameworks.

GST on Barley to Malt Conversion

  • AIBA played a pivotal facilitative role in addressing a critical GST issue affecting India’s malting industry. Following show cause notices issued by the Directorate General of GST Intelligence (DGGI) proposing that the conversion of barley into malt be taxed at 18% GST instead of the prevailing 5%, AIBA provided a common platform for discussions between member breweries and maltsters, facilitated multiple Board and stakeholder meetings, and supported coordinated representations before the GST Council. The collective efforts of the Malt Association, AIBA members and technical advisors resulted in the GST Council confirming the applicability of the 5% GST rate on barley-to-malt conversion, thereby avoiding a significant cost escalation for the brewing industry