Meghalaya government extends VAT exemption on fruit wine to 10 years

Guwahati: The Meghalaya government has extended the Value Added Tax (VAT) exemption on fruit wine from three years to 10 years, aiming to boost the state’s growing wine industry, Excise Commissioner Masteidwar Mar said on Friday.

The move is intended to ease the tax burden on small producers and promote higher quality standards among fruit wine producers.

Speaking at the two-day Meghalaya Wine Economy Summit 2025 at the State Convention Centre, Mar noted that Rule 377 of the Excise Act had been amended to allow the creation of wine boutiques.

These outlets can sell only registered homemade wines, either from dedicated premises or as part of standalone food establishments.

According to him, the new regulations will help visitors explore Meghalaya’s wine culture while encouraging entrepreneurs to establish boutique shops.

The Meghalaya Fruit Wine Makers Association highlighted the state’s long history of fruit-based fermentation, which dates back centuries and traditionally used millet, rice, and local fruits like sohiong.

Association president Danny Daly Kharsapam said winemaking in Meghalaya is “as old as the hills,” noting that even English settlers produced fruit wines. He cited Captain Hunt, who in 1947 pioneered cherry wine and cherry brandy production in Mawphlang.

Hunt’s products became popular among Assam tea planters and were sold at Kolkata’s Pegu Club before production declined in the 1980s.

Kharsapam added that traditional winemaking practices survived in small pockets and gained renewed attention in 2004 with a wine festival in Shillong.

The North East Food Show in 2019 further highlighted the sector’s potential, drawing interest from both consumers and entrepreneurs.

A significant development came last year when the state government amended the Assam Excise Rules to legalise commercial fruit wine production, allowing structured manufacturing and market expansion.

Kharsapam said that refining grape-free winemaking could boost rural incomes and contribute to Meghalaya’s economic diversification.

The association affirmed its commitment to supporting the sector through training, innovation, and market linkages to help local producers grow.