Excise Department Extends Deadline for Licence Fee Installments Due to Technical Issues

The excise department has extended the deadline for hotels, clubs, and restaurants to pay the second instalment of their licence fee. This extension, now until October 14, comes after a technical issue with the Excise Supply Chain Information Management System (ESCIMS) portal. The portal is crucial for ordering liquor stock and completing necessary documentation.

Throughout September, the ESCIMS portal was largely non-functional, causing significant disruptions. This led to a shortage of liquor at government-run stores and affected sales in hotels, clubs, and restaurants. The malfunction also resulted in a notable decline in revenue for the excise department.

Impact on Revenue and Sales

The department faced a revenue loss exceeding Rs 300 crore due to the portal's issues. Typically, monthly revenue stands at around Rs 750 crore but dropped to Rs 400 crore in September. Daily liquor sales also fell from an average of eight lakh bottles to five lakh bottles during this period.

Restro bar operators and hoteliers had previously raised concerns about their inability to place liquor orders or pay their licence fees by the original deadline of September 30. The portal's downtime lasted about three weeks before it resumed normal operations on a recent Sunday.

Resolution and Current Status

With the portal now functioning properly, HCR licensees have confirmed they can once again place orders for liquor. They are also able to generate transit passes needed for transporting stock. This resolution is expected to stabilise the supply chain and improve sales figures moving forward.

The excise department's decision to extend the payment deadline aims to alleviate some of the financial pressures faced by businesses due to these disruptions. Officials hope this measure will help restore normalcy in operations and revenue collection.

The technical glitch in the ESCIMS portal highlighted vulnerabilities in the system that need addressing to prevent future occurrences. Ensuring reliable access to this platform is crucial for maintaining steady operations within the hospitality sector.