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Liquor License

How to Get a Liquor Licence in India

In India, a liquor licence is also required for the sale of alcoholic beverages and may be obtained through the state government's excise department. To put it simply, a liquor licence is a permit issued by the state excise department to anybody who intends to engage in the production, importation, exportation, transportation, possession, purchase, and sale of liquor and other alcoholic drinks.

Alcohol Licence Classification in India

While many Indian States provide a single liquor licence for many types and classes of alcohol, certain states need an application for the issuance of a licence of a particular class.

There are many types of general alcohol licences, as follows:

Beer and wine licences; restaurant licences; tavern licences; and brewpub licences;

Wine and Beer Licence

those looking to market wine and beer, which are soft and light alcoholic beverages. The licence holder is not allowed to deal in any kind of hard alcohol.

Food and Beverage Licence

Restaurants that want to offer alcohol on their property must get a restaurant liquor licence. Another name for this licence category is "All-Liquor Licence."

Notably, alcohol accounts for a small portion (not more than 40%) of sales here.

liquor licence for a bar

Businesses that sell food but get half of their revenue from the sale of alcohol are eligible for this sort of licence.

Alcohol Licence for Brewpubs

Those who produce their own wine and beer are given this sort of licence.

What justifies obtaining an Indian liquor licence?

State Excise Department grants liquor licences to businesses who seek to sell and distribute alcoholic drinks.

So, a liquor licence is required for everyone who wants to launch a new business selling alcohol and associated drinks.

Before submitting an application for a liquor licence, one must carefully examine the unique laws and regulations that each State has set out for the selling of alcohol inside its borders.
Limits of an Indian Alcohol Licence
A legal liquor licence in India covers a broad range of activities related to the production, import, export, transportation, possession, purchase, and sale of alcoholic beverages, depending on the regulations and rules of each state.
Cost of a liquor licence in India
Like its laws and regulations, the cost of a liquor licence varies from state to state. It depends on the occasion for which it was bestowed.

If alcohol will be served at a small-town wedding or celebration, a temporary liquor licence will be required.

Fees

  • Gathering of more than 100 people, a party, or a marriageRs .10,000
  • Get-together, party, or wedding for 2 less than 100 people: Rs. 7,000
  • Cost of a liquor licence for a gathering in a private resort or flat
  • Here, a FL4 licence is required to permit alcohol use at resort or apartment parties, and its average price is Rs 13,000.
Cost of Serving Alcohol in the Permit Rooms
  • The cost of a liquor licence is Rs. 5,44,000 for serving in permit rooms and Rs. 1,50,000 for a restaurant or beer store.
  • The price of a state's liquor licence
  • The applicant must submit the proper application form and application fee in order to be granted a liquor licence in that state. Depending on the current state rules and regulations, the licence price connected might vary from Rs. 5000 to Rs. 15000 or more.
  • How to get a licence to sell alcohol in India
  • Before submitting an application for a liquor licence, you must be fully aware of the applicable state's current alcohol legislation since every state in India has its own unique set of alcohol laws, rules, and regulations.
  • physically visiting the licencing authority;
  • physically visiting adjacent liquor stores;
  • viewing the State Excise Department's website;

Documents Required for Obtaining a Liquor License

  • Identity Proof of the Applicant
  • Address proof of the applicant
  • Address proof of the premise used for serving/selling/storing/manufacturing of alcohol
  • NOC from the state fire department and municipal corporation
  • Application with personal and business details of the applicant
  • MOA and AOA copy in case of companies
  • Latest ITR copy
  • Applicant’s photograph
  • An affidavit declaring that there are no past criminal records in the name of the applicant
  • An affidavit declaring that there are no pending dues in the name of the applicant.
Revocation of the Liquor License
  • Serving of Liquor on Dry Days
  • Serving of Liquors to Minors
  • Violations of the rules and laws laid down by the state excise department

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.

if any person wishes to get his /her license renewed, then they must apply for same before the 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.
Excise Department manuals
The state excise department sometimes publishes different regulations in order to offer customers with safe and high-quality spirits and to encourage responsible drinking in India.
  • Purchasing alcohol from stores with state authorization
  • Issuing the licence to an eligible and trustworthy taxpayer.
  • Only personal consumption of alcohol purchased from army canteens is permitted.
  • When moving between states, people must take into account each state's restrictions on alcohol possession.
  • If you are under the legal drinking age, avoid purchasing alcohol.
  • Never serve or sell any kind of alcohol on property that lacks a licence.
  • In the event of a liquor store, every licence holder is required to post a board listing the prices of each brand of alcohol, as well as a menu pricing list in the case of a restaurant, bar, hotel, or disco.

Alcohol Licence for Madhya Pradesh

The Madhya Pradesh Excise Act mandates that establishments like bars, clubs, and hotels get liquor licences. This page goes into great length on the application process for a Madhya Pradesh liquor licence.
Licence for alcohol required

For the reasons listed below, a person must get a liquor licence:

  • To prevent the illegal selling of alcohol in a state, a liquor licence is required
  • To protect the nation's health, the sale of alcohol must be regulated by a liquor licence.
  • Without a state licence issued by the state supervisor of the Division of Alcohol and Tobacco Control, it is unlawful for anybody to produce, distribute, or sell intoxicating alcohol.

Liquor Licence Types​

In Madhya Pradesh, the following are necessary to get a liquor licence.

Indian Laws that Control Alcohol Consumption

Any business serving alcohol in India has to hold a current liquor licence. According to the 7th Schedule of the Indian constitution, concerns pertaining to the state list include alcohol usage, production, and distribution. As a result, each state has its unique alcohol regulations.

According to the Licencing Act of 2003, one must be aware of government laws and regulations as well as licence requirements before beginning a spirits company in India. These are the two most crucial prerequisites.
Sr. No Types of License Purpose Population of Town/City/District Annual License Fee
1 FL-1B Shop- Bar License Nil 2% of the annual value  of FL-1 Shop.
2 FL-2 Restaurant Bar License Gwalior, Bhopal, Indore, Sager, Jabalpur, Ujjain and Reva.


Kanha Kisali, Pench, Mukki, Bandhvgarh, Pachmarhi and Mandu
Rs.6,40,000


Rs. 2,20,000
2.a FL-2 CRUZE Boat in Bhopal Lake Rs.170000
3. FL-3 Hotel Bar License From 50,000 to 1 Lakhs

From 1 Lakhs to 3 Lakhs.

From 3 Lakhs to 5 Lakhs.

From 5 Lakhs to 10 Lakhs.

Above 10 Lakhs.
Rs. 5,30,000

Rs. 6,40,000

 Rs. 7,50,000

 Rs. 8,60,000

 Rs. 10,60,000
4. FL-3A Resort Bar License Nil Rs. 5,30,000
5. FL-4 Club License Nil Rs. 80,000
6. FL-4A Commercial Club License Gwalior, Indore, Bhopal, Jabalpur Urban Area and Rural Area and Other districts Urban Area.

Rural Area.
Rs. 4,80,000

Rs. 2,40,000
7. FL-5 Occasional License Commercial Purpose.

Other Purpose.
Rs. 2000

Rs. 1000
8. FL-6 Military Canteen Wholesale License Nil Rs.10,000
9. FL-7 Military Canteen Retail License Nil Rs. 1,000
10. FL-8 Military Club License Nil Rs. 1,000
11. FL-9 Bottling License Nil Rs. 6,90,000
12. FL-9A Sprit Bottling License under Franchise System Nil Rs. 1,15,000
13. FL-10A Outside Manufacturers Central Godown License (Sprit, Beer and Wine) Nil Nil
14. FL-10B Outside India Manufacturers Central Godown License (Sprit, Beer and Wine) Nil Nil
15. D-1 License to Manufacturer Sprit in Distillery Nil Rs.9,20,000
16. B-3 License for Brewery.

License for Winery.
Nil Rs. 9,20,000

Rs. 10,000
17. CS-1 License for Wholesale Supply of Country Liquor Nil Rs. 1,50,000
18. CS-1A License for Export of Country Sprit Nil Rs. 1,50,000
19. CS-1B License for Country Sprit Bottling Nil Rs. 2,00,000
20. DS-1 License for Wholesale of Denatured Sprit Nil Rs. 1,000
21. DS-2 License for retail sale of Denatured Sprit Nil Rs.200
22. DS-3 License for possession of Denatured Sprit for Industrial and Scientific Purpose Nil Rs.100
23. DS-4 S Special License for Druggist Nil Rs.100
24. RS-1 License for possession of Rectified Sprit for manufacture of basic drugs Nil Rs.100
25. RS-2A License for possession of Rectified Sprit for manufacture of basic drugs Nil Rs.100
26. PS-III Retail Poppy Straw License Nil Rs. 3,00,000
Documents Required

The required documents are to be furnished along with the application form.
  • Application form addressed to the Excise & Taxation Officer (Excise)
  • Proof of Age (should be more than 25 years of age)
  • Proof of Residence (copy of Driving License, Ration Card, Voter Card, Passport etc.)
  • Aadhaar Card.
  • NOC from the fire department
  • NOC from the municipal corporation
  • Photograph of the applicant.

Process for Obtaining the License

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  • Make the payment
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Trending news

On Wednesday, March 24, 2021.

BHOPAL: The license for bars can now be renewed at the district level. The process for renewal of license for liquor manufacturers has also been simplified. These decisions were approved by the state cabinet on Wednesday.

State government has simplified the norms for license renewal of bars. Doing away with the current practice of sending the renewal applications to the government now district collectors will approve the renewal, provided all conditions are met.

A senior official said that these provisions already existed in the Excise Act but were not followed. It had become a tradition that all renewal files were sent to the government, this will change from now on.

In another decision, now liquor manufacturers will not have to do a lot of paper formalities for extension of yearly license. The manufacturer can give an undertaking that it has completed all the formalities after which its manufacturing license will be given extension.

Brief Excise Policy

  1. The whole state of MP shall be subject to the Madhya Pradesh Excise Act, 1915. The Seventh Schedule of the Indian Constitution's Entry 51 of List II, which specifies excise duty, is used in this Act. The entry states: Excise duties on the following goods manufactured or produced in the State and countervailing duties at the same or lower rates on comparable goods manufactured or produced elsewhere in India, but excluding medicinal and toilet preparations containing alcohol or any substance included in sub-paragraph (b) of this entry.
  2. The State Government must determine the maximum amount of any alcoholic beverage that may be sold for retail use in accordance with this Act. Any amount more than that determined above will be deemed a wholesale sale.
  3. The State Government may, by notice, assign all or any of its functions under this Act, with the exception of the rulemaking authority granted by Section 62, to the Chief Revenue Authority or the Excise Commissioner;
  4. The state government has the authority to prohibit or limit the import, export, or conveyance of intoxicants inside the state.
  5. A permit must be obtained from the collector in order to import, export, or transport toxicants if their amount exceeds the state government's guidelines. Other authorities may also provide a pass, but only if a court ruling grants them the necessary power.
  6. A licence is necessary for the production, collection, transportation, cultivation, etc. of any intoxicant. A state government may also proclaim by notice that no licences would be issued for such activities.
  7. If duty is not paid, the excise commissioner may create, terminate, or impose a licence on the development and operation of a distillery or warehouse.
  8. No alcoholic beverage may be withdrawn from a brewery, distillery, warehouse, or other storage location until the applicable duty has been paid or a payment bond has been issued.
  9. The State Government may, by notice, permit as well as also ban the possession of any intoxicant by any individual or group of individuals inside the State or in any designated region.
  10. Considering the proviso clause as well, a licence is necessary for the selling of intoxicants.
  11. The state government has the authority to lease the right to produce and distribute intoxicants.
  12. The production and sale of alcoholic beverages in military cantonments with the commanding officer's knowledge and approval via the issuing of a licence.
  13. The licensee has a responsibility to have the necessary weights, measures, and testing equipment on hand in case an intoxicant is present.
  14. Neither women nor men under the age of 21 may work in or participate in any activity on these grounds. Additionally, it must not be sold to anybody under the age of 21.
  15. Liquor advertisements are not allowed.
  16. The ACT specifies when duties and taxes on excisable items will be applied and when they won't.
  17. The State Government is permitted to take payment of an amount in exchange for approving any lease under Section 18.
  18. This Act specifies the format and terms under which a licence must be issued.
  19. What sanctions will be enforced for illegal manufacturing, transport, possession, sale, etc.
  20. Fine or imprisonment for tampering with any denatured spirit or denatured spirituous composition.
  21. Penalty for trying to change or modifying any 2[denatured spirit or denatured spirituous preparation
  22. The Magistrate shall order the seizure of any item that is determined to be subject to confiscation under Section 46 and may also grant an appeal with respect to the order.
  23. Penalties for crimes against life are listed in Section 49-A.
  24. Any excise officer or police officer who is not below the level that is permitted by the state government may use their authority to undertake searches and to make arrests without a warrant. Other powers that are included within the aforementioned authority are indicated in this Act.
  25. This Act contains provisions relating to the Scheduled Areas, and some Scheduled Tribe members are excluded from certain of its requirements.

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