To legally sell alcohol in India, it is necessary to obtain a liquor licence. Various establishments such as liquor stores, pubs, clubs, discos, bars, hotels and restaurants typically possess such licences. Without a valid licence, selling alcohol is considered illegal and prohibited until the registration process for a liquor licence is completed.
Alcohol holds a significant role beyond being a beverage served in restaurants, hotels, parties and events. It is entwined with the intricate socio-legal fabric of a nation. Due to its association with crimes and other forms of violence, the regulation and control of the manufacturing, production and sale of liquor and other intoxicants become crucial for state governments.
As a result, each state government allocates liquor licences to oversee these activities. In legal terms, a liquor licence can be defined as an authorization issued by the state excise department to individuals involved in the manufacturing, import, export, transport, possession, purchase and sale of liquor and other alcoholic beverages.
Obtaining a liquor licence for online alcohol sales in India is also obligatory and it can be acquired through the Excise Department of the respective State Government.
What does a liquor licence regulate?
A liquor licence governs:
- Organisations permitted to sell alcohol
- When and locations in which companies can sell alcohol
- how much alcohol is being sold at once
- The prices that establishments charge for alcohol
- Alcoholic beverages sold and their types
- Who is allowed to buy alcohol?
- Organisations authorised to produce and sell alcohol
Types of Alcohol Licences
While many Indian States issue a single liquor licence for many types and classes of alcohol, some states need an application for the issuance of a licence of a particular class. The following are the several types of general liquor licences offered in India for use in states where various classifications of alcohol require permits-
Beer and Wine Licence:
This licence is for individuals who want to sell beers and wine and other soft, light alcoholic beverages. The possession of any type of hard liquor is forbidden once a beer and wine licence has been obtained.
Restaurant Liquor Licence:
A restaurant can apply for this licence if they want to serve alcohol on their property. The "All-Liquor Licence" is another name for this kind of licence. However, this sort of licence is only given to eateries whose revenue is mostly derived from the sale of food items, with a small portion (not to exceed 40%) coming from the sale of alcohol.
Tavern Liquor Licences:
These licences are given to establishments that, despite selling meals, generate half of their revenue from the sale of alcoholic beverages.
Brewpub liquor licences:
As the name implies, brewpub liquor licences are given to people who manufacture or brew their own wine and beer.
Liquor licence Cost in India
The cost of a liquor licence in India varies depending on the specific state's liquor laws. The following are the average expenses involved in obtaining a liquor licence, based on the type of licence and the event for which it is granted:
Temporary Liquor licence Cost
If alcohol is to be served at an event or wedding organised in a small town with a population below twenty lakhs, the temporary liquor licence typically costs around Rs. 10,000 for more than 100 attendees and Rs. 7,000 for less than 100 attendees.
Liquor licence Cost for Parties in Private Resorts or Flats
According to the excise department, an FL-4 licence is required to bring liquor to a party held in a resort or a private flat. The average cost of an FL-4 licence is Rs. 13,000.
Serving Liquor licence Cost in Permit Rooms
The cost of a liquor licence for serving alcohol in permit rooms is approximately Rs. 5,44,000, while for restaurants or beer shops, it is Rs. 1,50,000.
Liquor licence Cost for a Specific State
To obtain a liquor licence in a particular state, applicants are required to submit an application fee along with the relevant application form. The licence fee ranges from Rs. 5,000 to Rs. 15,000 or more, depending on the prevailing laws and regulations of the state.
How to Apply for a Liquor Licence in India?
To ensure compliance with the specific liquor laws of each state, it is essential to seek expert guidance before proceeding with the liquor licence application in India. However, here is a general outline of the steps involved in obtaining a liquor licence:
- Familiarise yourself with the process by visiting the official website of the state excise department or personally visiting their office for guidance.
- Determine the type of liquor licence required for your business.
- Gather all the necessary documents to initiate the application process.
- Download the appropriate application form from the state excise department's website.
- Complete the form with the required information and attach supporting documents where necessary. Provide details about your business location, personal data and the types of liquor you intend to sell.
- Submit the completed form and pay the applicable application fee to the relevant authority.
- The authority will review the provided details and may inspect your business premises to ensure compliance. They may request additional supporting documents if any discrepancies are found, which you must promptly provide.
- Once the verification process is satisfactory, a notice regarding your liquor licence application will be posted at your business premises. This notice allows local residents to raise objections within a specified period if necessary. You must address any complaints and justify that your business will not adversely affect the community.
- If no successful complaints are raised, the authority will grant you the liquor licence, enabling you to commence operations legally.
Conclusion
The numerous technicalities relating to obtaining a licence for liquor in India have been discussed, while also providing detailed information on the procedure and steps required to be followed in the process.
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