If you want to sell alcohol in India, you’ll need to get a liquor license first. Liquor is sold in India in bars, hotels, some restaurants, clubs, pubs, and discos. As a result, if you want to create a bar or restaurant, you’ll require a liquor license. Selling alcoholic beverages without a valid license is illegal and penalized by law. As a result, according to Indian liquor rules, entrepreneurs must obtain a wine shop license. Do you have any plans to open a wine shop? If that’s the case, keep reading to learn more about the wine shop license and how to get one.
Do you need a wine shop license to sell alcohol?
Because of the impact, it has on people, liquor is more than just a drink. It has a complicated socio-legal background. Furthermore, India has just recently grown more accepting of persons who consume alcohol. There used to be strict limitations and stigma attached to anyone who drank alcohol. The government has created certain basic ground rules to avoid such stigmas and bring a uniform procedure for the sale and consumption of alcohol. As a result, any business that serves or sells alcohol must have a current liquor license. The cost of a wine shop license and the application process differ relatively slightly between states.
What does the wine shop license regulate?
The following variables are regulated by a wine store license or a regular liquor license:
- Which companies are permitted to offer alcoholic beverages?
- When and where can businesses offer alcohol?
- The amount of alcohol sold
- The price of the alcohol sold
- The type of alcohol sold
- To whom will the alcohol be sold?
- Who has the authority to manufacture and distribute alcohol?
What are the different types of liquor licenses?
- Beer and Wine Shop License: Only mild alcoholic beverages, such as beer and wine, are sold; no strong alcoholic beverages are sold.
- Restaurant Liquor License or All-Liquor License: Granted if the restaurant’s alcohol sales do not exceed 40% of the total revenue.
- Tavern Liquor License: For establishments that make half of their revenue from the sale of alcoholic beverages.
- Brewpub Liquor License: This license is for people who create or brew their own wine and beer.
- L1: A wholesale liquor license allows you to sell liquor to other licensees.
- L3/L5: Allows hotels to provide customers foreign liquor in their rooms or bars (L5)
- L6: Retailers of Indian alcoholic beverages and beers.
- L19: For clubs that serve alcoholic beverages from other countries.
- L49: For someone who wants to serve alcohol at a gathering.
- L-9: Foreign liquor retail sales
- L-10: Liquor retailing in India and abroad
- P-13: To hotels for serving foreign alcohol at a special event.
- P-10: To offer alcohol at a specific event within the city.
Documents required to get a wine shop license in India
While each state has its own set of requirements, the following is a broad outline of what you’ll need to receive a wine shop license in India.
- Proof of the applicant’s identity
- Proof of the applicant’s address
- Take care of the premise/business proof.
- The NOC of the municipal corporation and the fire department
- Personal and business information must be included in the application.
- MOA and AOA for businesses
- Copy of the most recent ITR 8. Photograph of the applicant 9. Affidavit stating that the applicant has no prior criminal records
- An affidavit stating that the applicant has no outstanding debts.
How to get a wine shop license in India
So each state has its own set of rules governing the sale and use of alcoholic beverages, it’s essential to seek legal advice before applying for a license.
- First and foremost, you must determine the sort of class of license that you require.
- After that, go to the official website of the State Excise Department.
- Download a Wine Shop License application form from the website.
- Complete the form with all required information, such as the type of liquor, business location, license type, and background information.
- Finally, submit the paperwork to the appropriate authority, along with any relevant supporting documentation.
- You must also pay the application cost while submitting your application.
- The state authority will not cross-check and verify all of the information you provide, and you may be asked for further information if necessary.
- After your license has been verified, you will receive a notice with the information of your license at your business or personal address. Local governments can file objections to the notice displayed.
- If an objection is raised, you must justify your right to open a wine shop; otherwise, you will be issued a liquor license.
Wine shop license price in India
The cost of obtaining a wine license is determined by the following variables;
- The licensing type
- If applicable, the nature of the occurrence
- The nature of the company
However, the average cost of various licenses in India is shown below.
Temporary Liquor License: For small parties or gatherings in a town with a population of fewer than 20,000 people.
- INR 7,000 for groups of less than 100 people.
- INR 10,000 for more than 100 members
An FL-4 license
- costs roughly INR 13,000 to throw a party with booze in a resort or private residence.
Permit Room License:
- INR 5,44,000 to serve in permit rooms
- INR 1,50,000 for restaurants and wine/beer shops
State Liquor License:
- Depending on the state, anywhere from INR 5000 to INR 15000.
- In Tier-1 cities, the annual license price is INR 10 lakhs.
- In Tier-2 cities, the annual license price is INR 7.5 lakhs.
- In Tier-3 cities, the annual license price is INR 5 lakhs.
- In Tier-4 cities, the annual license price is INR 2.5 lakhs.
Things to keep in mind about getting a wine shop license in India
- Because the production, sale, and use of alcoholic beverages come under the seventh schedule, each state has its own set of liquor laws.
- Because liquor distribution and consumption rules range from state to state, the legal drinking age differs as well.
- The Delhi Excise Department has requested that the government lower the legal drinking age for beer and wine from 25 to 21 years old. However, the age limit for hard liquor use would remain at 25.
- While Maharashtra law requires citizens to obtain a license from a Government Civil Hospital before they can drink, this regulation is not implemented. Furthermore, the State legislature allows local governments the authority to outright ban alcohol. As a result, the sale and manufacturing of alcohol are prohibited in Chandrapur, Wardha, and Gadchiroli.
- The following are some of India’s most important laws concerning the sale of alcohol:
- Bombay Prohibition Act, 1949
- Goa Excise Duty Act and Rules, 1964
- Tamil Nadu Liquor Rules, 1981
- UP – United Provinces Excise Act, 1910
- Bengal Excise Act, 1909
- Punjab Excise Act, 1914
- Karnataka Excise Act, 1965
- A liquor license is valid for one year from the date of issuance and must be renewed annually through renewal applications. All such applications must be submitted 30 days before the license expires.
- A liquor license may be revoked if the following conditions are met:
- Serves liquor on government-sanctioned dry days
- Serves liquor to minors
- Violates the State Excise Department’s guidelines
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