The Government of Karnataka, on May 08, 2026, published the draft Karnataka Excise (Distillery and Warehouse) (Second Amendment) Rules, 2026 proposing amendments to the Karnataka Excise (Distillery and Warehouse) Rules, 1967 under Section 71 of the Karnataka Excise Act, 1965. The draft rules introduce the concept of a “Distillery Factory Out-let” within licensed distillery premises to promote alcohol tourism and permit controlled tasting and sale of liquor to visitors.
The proposed amendment inserts a new Rule 4-E providing for grant and renewal of licences for Distillery Factory Out-lets. Eligible distillery licensees may apply to the Excise Commissioner through Form 2-B along with prescribed fees and infrastructure details. The proposed licence would remain valid for five excise years, subject to annual payment of licence fees of ₹4 lakh plus an additional licence fee equivalent to 15% of the licence fee. The outlet may permit tasting of liquor and sale of sealed liquor bottles ranging from 375 ml up to the permissible possession limits under applicable excise rules.
The draft rules further specify that liquor for tasting or sale must be procured only through Karnataka State Beverages Corporation Limited in accordance with applicable excise rules. The facility is intended exclusively for visitors under the concept of alcohol tourism, and wholesale sales or sales to non-visitors are prohibited. Objections and suggestions on the draft rules may be submitted to the Additional Chief Secretary, Finance Department, within seven days from the date of publication in the Official Gazette.
[Notification No. FD 11 PES 2025]
