Trying to get a liquor license in India, can be a long and tedious process. Going by states in India, every place has different requirements and licensing procedures for obtaining a liquor license, to sell alcohol. Understanding the general steps to apply for a liquor license can help in making the process easier and faster. Read on, to know more about Liquor laws & Liquor License in India!
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Since liquor consumption and distribution laws are governed differently in different states, each state has its own age criteria when it comes to the legal drinking age. Here is a list of the legal drinking age in various states:
In Maharashtra, a liquor license obtained from a Government Civil Hospital is required to drink, although this is largely not enforced. Additionally, state legislature empowers district governments to ban alcohol entirely. As a result, three districts, Wardha, Gadchiroli and Chandrapur have imposed a total ban on the production and sale of alcohol.
In India, any establishment that serves alcohol must have a valid liquor license. Liquor consumption, manufacturing, and distribution are issues pertaining to the state list as per the seventh schedule of the Indian constitution. This is why each state has its own liquor laws. Even for registration of foreign liquor bar licenses, every government regulates alcohol sales to prevent minors from purchasing spirits, wine, beer, and liquor. For instance, the requirements for a liquor license varies in small towns where they often only approve a new license when the population grows.
According to the Licensing Act 2003, you need a license to sell alcohol and this includes giving away free alcohol as it is considered an incentive to purchase or that it is included in your pricing structure.
Before starting a liquor business, we have to know about the License or Government regulations, and legal things which are one of the most important factors before starting the liquor business in India.
Some of the key laws governing alcohol consumption in India are:
1. The Delhi Excise Act, 2009
The Delhi Excise Act, 2009 is the act that governs all matters relating to the manufacture, import, export, transport, possession, purchase, sale, etc., of the liquor and other intoxicants, in the NCT of Delhi. As per Sec 23 of the Act, no person below the age of 25 shall be served and/or delivered alcohol for consumption. The Delhi Excise Act also establishes the licensing authorities for obtaining a liquor license in the NCT of Delhi.
2. The Delhi Excise Rules 2010
Complementing the Delhi Excise Act, 2009, the Delhi Excise Rules 2010, lays down the detailed procedure for obtaining a liquor license in Delhi. The Act also lays down detailed rules regarding the import, export, possession transport, permits and passes in relation to alcohol and other intoxicants.
3. The Bombay Prohibition Act 1949
The Bombay Prohibition Act, 1949 is an Act that caters to the enforcement and promotion of alcohol prohibition in the state of Bombay. After the state of Bombay was divided into the states of Maharashtra and Gujarat in 1960, the Act was made to be applicable in the State of Gujarat.
Under The Bombay Prohibition Act, 1949, a permit is mandatory to purchase, possess, serve or consume liquor. The Act also empowers the police and other authorities to arrest a person for indulging in acts that are in contravention to the Bombay Prohibition Act with punishment ranging from three months to five years in prison. The Bombay Prohibition Act thus bans liquor consumption in the state of Gujarat.
4. The Goa Excise Duty Act and Rules, 1964
The Goa Excise Duty Act and Rules, 1964, is a piece of legislation that regulates the manufacture, import, export, transport, possession, purchase, sale, etc., of the liquor and other intoxicants, in the state of Goa. The act consolidates all the functioning liquor laws prevailing in the state of Goa and defines key regulations such as legal drinking age, excise authorities, prohibitions, licensing rules, etc. Section 19 of The Goa Excise Duty Act and Rules act prohibits the sale of liquor to any person who is:
5. Tamil Nadu Liquor(License and Permit) Rules, 1981
The Tamil Nadu Liquor (License and Permit) Rules, 1981 is an act that regulates the manufacture, import, export, transport, possession, purchase, sale, etc., of the liquor and other intoxicants, in the state of Tamil Nadu. According to the general provisions of the act, no liquor can be imported in the state of Tamil Nadu, other than by persons holding a valid permit as per form FP3, FP5, FM1, and FL7. The act also restricts the export of liquor outside of Tamil Nadu except by persons holding a license as per form FL4.
6. Uttar Pradesh (United Provinces Excise Act, 1910)
The Uttar Pradesh (United Provinces Excise Act, 1910) is an act that regulates the manufacture, import, export, transport, possession, purchase, sale, etc., of the liquor and other intoxicants, in the state of Uttar Pradesh. According to the preamble of the act, it is drafted to promote, enforce and/or carry into effect the policy of prohibiting the import, export, transport, manufacture, sale, and possession of liquor and of intoxicating drugs in the United Provinces. The act prohibits the import and export of liquor in/from the state of Uttar Pradesh without prior approval of the State Government in the form of a permit/ license.
7. West Bengal (Bengal Excise Act 1909)
The West Bengal (Bengal Excise Act 1909) is an act that regulates the manufacture, import, export, transport, possession, purchase, sale, etc., of the liquor and other intoxicants, in the state of West Bengal. The act gives exclusive powers to the State Government to declare what constitutes “country” and “foreign” liquor. Additionally, the act lays down licensing and permit requirements for dealing with liquor and other intoxicants.
8. Haryana (Punjab Excise Act, 1914)
The Haryana (Punjab Excise Act, 1914) is an act that regulates the manufacture, import, export, transport, possession, purchase, sale, etc., of the liquor and other intoxicants, in the state of Haryana. The Act lays down provisions relating to the establishment of excise authorities, duties and fees, offenses and penalties relating to the import, export, manufacturing, and possession of liquor and other intoxicants. The act also sets the legal age of drinking as 25 years in the state of Haryana.
9. Karnataka Excise Act, 196T5
The Karnataka Excise Act, 1965 is a piece of legislation that regulates the manufacture, import, export, transport, possession, purchase, sale, etc., of the liquor and other intoxicants, in the state of Karnataka. The act lays down detailed provisions regarding the appointment of excise commissioners, licensing and permit regulations, duties, fees, offences, penalties, etc. The Karnataka Excise Act, 1965 sets the legal age of drinking in the state of Karnataka as 18 years.
In addition to the state-specific laws to regulate matters relating to liquor and other intoxicants, Article 47 of the Indian Constitution puts a duty upon the State to bring prohibition on the consumption except for medicinal purposes of intoxicating drinks and of drugs which are injurious to health. This is a reason behind a strict ban on alcohol in as many as 5 Indian states.
While many of the Indian States grant a single liquor license for various kinds and classes of alcohol, in some states, an application for a grant of license of a specific class is required. Therefore in states where a permit is required for different classes of alcohol, the following are the different set of general liquor licenses available in India-
Since a Liquor License is granted by the state excise department to those who wish to sell and/or distribute alcohol and alcoholic beverages, thus, if any person is involved or planning to venture in a business that deals with the sale/distribution or manufacturing of alcohol and/ or alcoholic drinks, then he/she must apply for a Liquor License.
Since every state government keeps a stringent check on the sale and consumption of alcohol sold within its territory, every State has a different set of liquor laws that must be carefully observed before applying for a Liquor License.
Moreover, since dealing with the manufacture, import, export, transport, possession, purchase, sale, etc., of liquor is made punishable in the absence of a Liquor License, it is mandatory for one to obtain a valid Liquor License in accordance with the state laws.
Depending upon the legislation and laws of each state, a valid liquor license covers a wide ambit in relation to the manufacture, import, export, transport, possession, purchase, sale, etc., of liquor.
Thus a liquor license granted by the state excise department is applicable to not only to the businesses/entity involved in selling alcohol, it also caters to subjects like when and where the liquor can be sold/served/stored, details about the quantity and container in which the liquor must be sold, the cost and type of alcohol that can be sold/served and to whom the alcohol can be sold/ served.
Additionally, a Liquor License also implies regulations relating to the manufacturing, import, export, transport, and possession of liquor and other intoxicants.
As stated above, since liquor laws vary from state to state, the cost of a liquor license also varies from state to state. Depending upon the type of Liquor License granted and the event for which it is granted, the following are the average costs that are incurred in obtaining a Liquor License:
As each state in India has its own set of liquor laws, rules, and regulations, it is important to have a thorough knowledge of the liquor laws prevailing in your state before applying for a liquor license. Since liquor laws of the state are laid down by the State Excise Department, anyone wishing to obtain a liquor license can inquire about the same by:
Once you have a fair idea about the prevailing liquor laws, rules, and regulations of your state, you can decide the type and class of license you need to apply for. The general classes of license include:
The third thing you need to figure out is the cost of your preferred liquor license as per your state laws. To have a fair idea about the cost of obtaining a liquor license in your state, along with other relevant information, you can visit the website of your State Excise Department. For example, people wishing to obtain a Liquor License in Delhi can visit the website of the Delhi State Excise Department.
Once you have all the information about the cost and documents required to obtain your preferred liquor license, follow the given steps to apply for a Liquor License in India,
STEP 1: Visit the official website of your State Excise Department and download the application form for your preferred license type. Once downloaded, fill in the application form with all necessary details. Once filled, the form must be submitted to the concerned authority along with the required application fee which varies from state to state.
While filling out the form, do remember to mention all the required details, including the type of liquor license required, premises where it needs to be served/sold, type of liquor planning to be served/sold, etc. Also, you must make sure to state your background information like age, business experience, criminal record (if any), etc. along with relevant documents.
STEP 2: The documents which are required to be attached along with the application form vary from license to license. However, documents like applicant’s identity proof, residence proof, a valid address and/or premise address proof, incorporation certificate( in case of business entities), copy of ITR, etc. are universally required.
STEP 3: Once the application form is submitted, the state licensing authority will cross-check and verify the credentials submitted by you and can also call for additional documents required.
STEP 4: Post verification, a notice shall be posted by the concerned state authority on your personal or business address, declaring your name and the license details. The notice so displayed shall be open for any objections raised by the local people, which will be communicated to the concerned department.
STEP 5: In case an objection is raised, you will be given a right to defend yourself. In case, no objections are raised, the authority will review the application and grant you the Liquor License.
A Liquor License has a validity of 1 year from the date of issue. After expiry, a liquor license can be renewed annually, by filling the renewal application form available on the website of the State Excise Department and paying the relevant renewal fee.
Therefore, if any person wishes to get his /her license renewed, then he/she must apply for the same before thirty days from the date of expiry of the license along with the payment of a renewal fee which is fixed by the State Excise Department depending upon the type and/or class of the license. There can also be a reduction in the renewal fee, based upon the conduct and goodwill of the applicant.
A Liquor License will be liable for revocation if any one of the following acts is committed by the applicant:
Each state has its own prescribed set of documents that are required for obtaining a liquor license. However, there are certain documents that are needed in general for obtaining a Liquor License. These are:
Various types of Liquor Licenses can be obtained as per the prevailing liquor laws of each state. Some of the general types of licenses for which an individual or a company can apply for are depicted in the following table:
It is a License granted for the wholesale supply of Indian liquor to other license holders.
L3 is a liquor license granted to hotels that permit the serving of foreign liquors to residents staying in hotel rooms, whereas, L5 license is granted to serve liquor in bars or restaurants which are situated in the hotel premises.
L6 is issued to the retail vendors of Beers and Indian Liquors.
L19 is permitted to a club registered to serve foreign liquor.
L49 is easily granted to any person for serving liquor in any party or function at specific premises anywhere in a state.
There are other licenses like the L-11, L-12, L-15, L-16, L-17, L-18, L-19, L-20, L-21, L-28, L-29, L-30 licenses, which the state excise department grants for various other reasons.
To provide safe and quality liquor to the consumers, and to promote responsible drinking in India, the state excise departments’ issues various guidelines from time to time. These guidelines are aimed at raising awareness and ensuring a safe drinking environment. State Excise guidelines include:
How much does liquor license cost in India?
The price for obtaining a liquor license depends upon the state in which it is applied and the type of license applied for. The average cost incurred in obtaining the following licenses are:
What is the purpose of a liquor license?
Since a Liquor License is granted by the state excise department to those who wish to sell and/or distribute alcohol and alcoholic beverages, thus, if any person is involved or planning to venture in a business that deals with the sale/distribution or manufacturing of alcohol and/ or alcoholic drinks, then he/she must apply for a Liquor License.
Are there different types of liquor licenses?
Yes, depending upon the state you reside in, there can be various types and classes of liquor licenses. The various classes of liquor licenses granted in Delhi are:
It is a License granted for the wholesale supply of Indian liquor to other license holders.
L3 is a liquor license granted to hotels that permit the serving of foreign liquors to residents staying in hotel rooms, whereas, L5 license is granted to serve liquor in bars or restaurants which are situated in the hotel premises.
L6 is issued to the retail vendors of Beers and Indian Liquors.
L19 is permitted to a club registered to serve foreign liquor.
L49 is easily granted to any person for serving liquor in any party or function at specific premises anywhere in a state.
Additionally, there are other licenses like the L-11, L-12, L-15, L-16, L-17, L-18, L-19, L-20, L-21, L-28, L-29, L-30 licenses, which the state excise department grants for various other reasons.
Do you need to get your Aadhaar card linked while getting a liquor license?
There is no provision for linking your Aadhaar to a liquor license. However, an Aadhaar may be required to be served as an identity proof when applying.
What is the cost of getting a liquor license in India for restaurants?
The cost of the liquor license for your restaurant will depend upon a variety of factors such as
For instance, Serving Liquor License Cost in Permit Rooms for restaurants is Rs. 1,50,000
Do you need a liquor manufacturing license in India?
Since each state has its own law relating to the manufacture, import, export, transport, possession, purchase, sale, etc., of liquor, a manufacturing liquor license is a must to undertake the activity of manufacturing liquor in India.
What is the minimum age for getting a liquor license?
The minimum age of getting a liquor license depends upon the legal drinking age of each state. Therefore the minimum age for getting a liquor license in various states is:
Minimum Drinking Age
The Delhi Excise Department has sent a proposal to the Delhi Government for lowering the drinking age for wine and beer to 21, although it will still remain 25 for hard liquor. (light beer allowed at age 21)
In Maharashtra, a liquor licence obtained from a Government Civil Hospital is required to drink, although this is largely not enforced. Additionally, state legislature empowers district governments to ban alcohol entirely. As a result, three districts, Wardha, Gadchiroli and Chandrapur have imposed a total ban on the production and sale of alcohol.
Rajasthan, Goa, Himachal Pradesh, Andaman & Nicobar, Puducherry, Sikkim, Jammu and Kashmir and Karnataka.and
21 years: Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Daman and Diu, Goa Jammu and Kashmir, Jharkhand, Karnataka, Maharashtra (only for beer), Meghalaya, Mizoram, Madhya Pradesh, OdishaOrissa, Tamil Nadu, Telangana, Tripura, Uttar Pradesh, Uttrakhand, and West Bengal
States where alcohol consumption is banned:
Bihar, Gujarat, Lakshadweep (Consumption is legal only on the resort island of Bangaram), Manipur (Partial prohibition since 2002), and Nagaland.
Arrack has been banned in Karnataka since 1 July 2007
Is it legal to sell homemade wine in India?
Making or brewing homemade wine in India is absolutely legal when it is for personal use. However, selling homemade wine without a valid permit is illegal in India.
How to get a liquor license in Punjab?
A liquor license can be obtained in Punjab, by visiting the website of the excise department of Punjab and applying for a liquor license of your choice.
What is the cost of getting a liquor license in Delhi?
The cost of getting a liquor license in Delhi will depend upon a variety of factors such as
The average cost incurred in obtaining the following licenses in Delhi are:
How to get a liquor license in Mumbai?
A liquor license can be obtained in Mumbai, by visiting the website of the excise department of Maharashtra and applying for a liquor license of your choice.
What is the cost of getting a liquor license in Mumbai?
The cost of getting a liquor license in Mumbai will depend upon a variety of factors such as
The average cost incurred in obtaining the following licenses in Mumbai are:
