The State Government of Karnataka has recently published the Karnataka Excise (Brewery) Rules, 2022. Through this amendment, the definition for the term “Craft brewery” has been inserted. “Craft brewery”, according to the rules, is defined as a small unit with an installed capacity producing less than two lakh litres per annum in "a place having not less than 4,000 sq. feet built-up area, wherein only bottled beer is manufactured".

According to Shivalingaiah, secretary general of Karnataka Brewers and Distillers Association, these rules will be applicable to micro brewery units planning to release craft beers into the market. The excise duty structure of these craft beers are yet to be announced as per the secretary general.

The Karnataka State Excise has been applauded for paving the way for beer culture to develop in India’s Silicon Valley. Today, Bengaluru has the highest number of pubs and microbreweries as compared to any other state in India and has been a pioneering trendsetter in encouraging and enabling the advancement of the craft brewing industry and other homegrown beer labels. Many leading beer industry players have congratulated the incredibly tech-savvy Karnataka State Excise for its transparency, structure and organisation policies when it comes to managing the entire distribution and supply channel.

Any person desirous of obtaining a licence for a Craft brewery shall apply to the Excise Commissioner in Form 1-B through the Deputy Commissioner. If the Excise Commissioner is satisfied that the application is in accordance with these rules, that the premises in which the applicant proposes to manufacture bottled Beer and the apparatus he proposes to use are suitable he may grant the licence to the applicant in Form 2-A, subject to these rules and the conditions of the licence.

Further the fee for grant or renewal of a craft brewery licence shall be Rs. 5 Lakh in a year. For further information, please refer to the official document here.

Source: Deccan Herald