Gandhinagar: The Gujarat government has announced significant relaxations in regulations related to foreign liquor at GIFT City, aiming to further strengthen its position as a global business and financial hub.
In separate notifications issued by the Home Department and the Finance Department, the state government introduced key policy changes that provide relief in liquor transportation fees and tax regulations.
According to a gazette notification issued by the Home Department, certain provisions under the Bombay Foreign Liquor and Rectified Spirit (Transport) Fee Rules, 1954 have been exempted. Specifically, relaxations have been granted under clauses (b) and (c) of Rule 4, providing relief in fees associated with the transportation of foreign liquor.
In another major move, the Finance Department amended the Gujarat VAT Act, 2003 by introducing Entry No. 120. Under this amendment, foreign liquor served through designated “Wine and Dine” facilities within GIFT City will be exempt from Value Added Tax (VAT).
As a result, customers availing themselves of these approved Wine and Dine facilities will no longer be required to pay VAT on foreign liquor served at such establishments. The government clarified that the exemption is limited to the Wine and Dine facilities operating within GIFT City and does not apply elsewhere in the state.
Both notifications have come into effect immediately.
The decision is being viewed as a strategic step to enhance the attractiveness of GIFT City for international companies, foreign investors, global professionals, and business travelers. By easing regulatory and tax-related provisions, the state government aims to align GIFT City with global business standards and improve its competitiveness as an international financial and commercial destination.
