Meghalaya extends VAT exemption on fruit wine to 10 years

The Meghalaya government has extended the Value Added Tax (VAT) exemption on fruit wine from three years to 10 years, a move expected to give a major push to the state’s growing wine economy, Excise Commissioner Masteidwar Mar said on November 28. 

The decision, taken recently, is aimed at reducing the tax burden on small producers and encouraging higher standards among those selling fruit wines.

Speaking at the two-day Meghalaya Wine Economy Summit 2025 at the State Convention Centre, Mar said the government had also amended Rule 377 of the Excise Act to allow the establishment of wine boutiques that can sell only registered homemade wines in designated premises or as part of standalone food outlets. 

The new rules, he said, would enable visitors to experience Meghalaya’s unique wine culture while encouraging local entrepreneurs to set up boutique outlets.

The Meghalaya Fruit Wine Makers Association highlighted the region’s long but largely undocumented history of fruit-based fermentation, noting that traditional practices date back centuries and relied on millet, rice and indigenous fruits such as sohiong. Association president Danny Daly Kharsapam said winemaking in the state was “as old as the hills”, recalling that even English settlers produced fruit wine. He cited the example of Captain Hunt, who in 1947 pioneered the manufacture of cherry wine and cherry brandy in Mawphlang. His products later became popular among tea planters in Assam and were even available at the Kolkata-based Pegu Club before production declined in the 1980s.

Kharsapam said the tradition survived in pockets of society and received renewed attention in 2004 when local enthusiasts organised a wine festival in Shillong. The North East Food Show in 2019 further showcased the sector’s potential, drawing strong interest from consumers and entrepreneurs.

A major breakthrough came last year when the state government amended the Assam Excise Rules to legalise fruit wine as a commercial venture, opening the door for structured production and market expansion. Kharsapam said perfecting grape-free winemaking could strengthen rural incomes and add to Meghalaya’s economic diversification.

The association said it remains committed to supporting the sector’s growth and creating opportunities for local producers through training, innovation and market linkages.