A Guide to getting a Liquor License in India

What is a Liquor License?

In order to sell alcohol in India, one needs to procure a liquor license. Usually, liquor stores, pubs, clubs, discos, bars, hotels, and restaurants own a license to sell alcohol. So, the sellers are required to hold a license to sell alcohol, otherwise, the selling of alcohol is illegal and prohibited until registration for a liquor license is done.

Liquor is more than just a drink that is served in restaurants, hotels, parties, and functions. It is associated with the complex socio-legal backdrop of a nation. Often associated with crimes and other violent activities, liquor is a sensitive issue to deal with for any state government. This is why in order to regulate and control the manufacturing, production, and selling of liquor and other intoxicants, each state government allots a liquor license. Thus, in simple legal terms, a liquor license can be defined as a license granted by the state excise department to anyone who wishes to indulge in the manufacturing, import, export, transport, possession, purchase and selling of liquor and other alcoholic beverages.

The liquor license for online selling of liquor in India is also mandatory and can be acquired from the Excise Department of the State Government.

Liquor license regulates:

• Businesses allowed to sell alcohol

• When and where businesses can sell alcohol

• The quantity of alcohol being sold at a time

• The alcohol charges allotted by businesses

• The type of alcoholic beverages sold

• To who alcohol can be sold

• Businesses permitted to manufacture and distribute alcohol

Table of Content:

1. What is the legal drinking age in different states in India?

2. Laws that Regulate Liquor Consumption in India

3. Classification of Liquor Licenses 

4. What is the need to obtain a Liquor License?

5. The Ambit of a Liquor License

6. Liquor License cost in India

7. How to apply for a Liquor License in India?

8. Validity and Renewal of License

9. Revocation of the Liquor License

10. Documents Required for Obtaining a Liquor License

11. Types of Liquor Licenses 

12. Guides by the Excise Department

What is the legal drinking age in different states in India?

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:

• 25 years: Delhi, Punjab, Haryana, Chandigarh, Maharashtra and Dadra, and Nagar Haveli, Daman and Diu.

• 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.

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.

• 23 years: Kerala

• 18 years: Rajasthan, Goa, Himachal Pradesh, Andaman & Nicobar, Puducherry, Sikkim, Jammu and Kashmir, and Karnataka.

• 21 years: Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Jharkhand, Maharashtra (only for beer), Meghalaya, Mizoram, Madhya Pradesh, Odisha, 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.

Laws that Regulate Liquor Consumption in India

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:

• A person of unsound mind

• A person below the age of 21

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.

Classification of Liquor Licenses 

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-

• Beer and Wine License – The Beer and Wine License is for those who are wishing to sell soft and mild liquors like beers and wine. Once a Beer and Wine License is obtained, there is a prohibition upon the license holder to deal with any kind of hard liquor.

• Restaurant Liquor License –The Restaurant Liquor License is for restaurants that are willing and wish to serve alcohol on their premises. This type of license is also called the “All-Liquor License”. However, this type of license is only granted to restaurants whose business is mainly generated from the sale of food items, and only a percentage (not exceeding 40%) of sales come from liquor.

• Tavern Liquor License - This type of license is granted to businesses, which in spite of offering food items make up half of their profits out of the alcohol sale.

• Brewpub Liquor License –As the name suggests, this type of License is granted to those who make/ brew their wine and beer.

What is the need to obtain 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.

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.

The Ambit of a Liquor License

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.

Liquor License cost in India

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:

• Temporary Liquor License Cost – In case the liquor is to be served at an event/party or a marriage organized in a small town, with a population below twenty lakhs, the temporary liquor license will cost somewhere around Rs.10,000 for more than 100 members and Rs. 7,000 for less than 100 members.
• Liquor License cost for a Party in a Private Resort or Flat – As per the excise department, the FL-4 license is required for bringing in liquor in a party organized in a resort or a private flat. The average cost of an FL-4 license is Rs. 13,000.
• Serving Liquor License Cost in Permit Rooms – The Liquor License cost for serving in permit rooms is rupees 5,44,000 and that for a restaurant or beer shop is Rs. 1,50,000.
• Liquor License cost for a particular State – For obtaining a Liquor License in a particular state, the applicant is required to submit an application fee along with the relevant application form. The license fee attached ranges from Rs. 5000 to Rs. 15000 or more depending upon the prevailing state laws and regulations.

How to apply for a Liquor License in India?

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:

• Visiting the website of the State Excise Department,

• Physically visiting the licensing authority

• Physically visiting nearby liquor shops.

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:

• Beer and Wine License

• Restaurant Liquor License

• Tavern Liquor License

• Brewpub Liquor License

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.

Validity and Renewal of 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.

Revocation of the Liquor License

A Liquor License will be liable for revocation if any one of the following acts is committed by the applicant:

1. Serving of Liquor on Dry Days

2. Serving of Liquors to Minors

3. Violations of the rules and laws laid down by the state excise department

Documents Required for Obtaining a Liquor License

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:

1. Identity Proof of the Applicant

2. Address proof of the applicant

3. Address proof of the premise used for serving/selling/storing/manufacturing of alcohol

4. NOC from the state fire department and municipal corporation

5. Application with personal and business details of the applicant

6. MOA and AOA copy in case of companies

7. Latest ITR copy

8. Applicant’s photograph

9. An affidavit declaring that there are no past criminal records in the name of the applicant

10. An affidavit declaring that there are no pending dues in the name of the applicant.

Types of Liquor Licenses 

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:

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.

Guides by the Excise Department

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:

1. Buying liquor from State authorized liquor shops.

2. Granting of the license to a valid and honest taxpayer.

3. The use of liquor bought from army canteens must be restricted for personal use.

4. Individuals traveling from one state to another must cater to the possession limit for alcohol in each state.

5. Do not buy liquor, if you are below the legal drinking age.

6. Do not service/sell any kind of liquor in an unlicensed premise.

7. Every license holder should display a board showing the price of each brand of liquor in case of a liquor shop, menu rate list in case of a restaurant, bar, hotel or disco.

Frequently Asked Questions:

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:

• For Temporary Liquor License – In case the liquor is to be served at an event/party or a marriage organized in a small town, with a population below twenty lakhs, the temporary liquor license will cost somewhere around Rs.10,000 for more than 100 members and Rs. 7,000 for less than 100 members.
• Liquor License for a Party in a Private Resort or Flat – As per the excise department, the FL-4 license is required for bringing in liquor in a party organized in a resort or a private flat. The average cost of an FL-4 license is Rs. 13,000.
• Serving Liquor License Cost in Permit Rooms– The Liquor License cost for serving in permit rooms is rupees 5,44,000 and that for a restaurant or beer shop is Rs. 1,50,000.

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:

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

• The state you reside in
• Type of license required

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:

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

• Type of license required
• Event for which it is required (if applicable)
• Nature of the business entity

The average cost incurred in obtaining the following licenses in Delhi are:

• For Temporary Liquor License  – In case the liquor is to be served at an event/party or a marriage organized in a small town, with a population below twenty lakhs, the temporary liquor license will cost somewhere around Rs.10,000 for more than 100 members and Rs. 7,000 for less than 100 members.
• Liquor License for a Party in a Private Resort or Flat – As per the excise department, the FL-4 license is required for bringing in liquor in a party organized in a resort or a private flat. The average cost of an FL-4 license is Rs. 13,000.
• Serving Liquor License Cost in Permit Rooms– The Liquor License cost for serving in permit rooms is rupees 5,44,000 and that for a restaurant or beer shop is Rs. 1,50,000.

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

• Type of license required

• Event for which it is required (if applicable)

• Nature of the business entity

The average cost incurred in obtaining the following licenses in Mumbai are:

• For Temporary Liquor License  – In case the liquor is to be served at an event/party or a marriage organized in a small town, with a population below twenty lakhs, the temporary liquor license will cost somewhere around Rs.10,000 for more than 100 members and Rs. 7,000 for less than 100 members.

• Liquor License for a Party in a Private Resort or Flat – As per the excise department, the FL-4 license is required for bringing in liquor in a party organized in a resort or a private flat. The average cost of an FL-4 license is Rs. 13,000.

• Serving Liquor License Cost in Permit Rooms– The Liquor License cost for serving in permit rooms is rupees 5,44,000 and that for a restaurant or beer shop is Rs. 1,50,000.