Imported wine, liquor and beer will cost less with the government on Tuesday scrapping additional customs duty of up to 150 per cent on these beverages.
The Central Board of Excise and Customs on Tuesday notified the duty cut but allowed state governments to impose additional levies equivalent to taxes on domestic manufacturers.
However, for consumers the cost of foreign drinks will be significantly reduced.
India has done away with the additional customs duty following complaints by the US and European Union to the WTO that New Delhi was violating the limit set by the multilateral body.
The WTO has already set up Dispute Settlement panels to hear these cases.
The wine and spirit importers welcomed the decision saying that they have been asking for it for the last four years.