India:  Liquor License: Procedure for obtaining it in India (excerpt)

Complete Checklist for Obtaining Liquor License in India

MYStory

By Shivani Jain

January 16, 2020

In India, selling liquor is one of the most profitable businesses for the Hotel Sector. It can help to boost the profit margin because of the low labor and high demand. But, at the same time obtaining Liquor License in India, involves a lot of requirements, documents, intricacies and procedures. Further, the State governments are required to keep an eye on the sale and consumption of the alcohol, as every state has a different set of laws and regulation governing liquor.

In legal terms, Liquor License is a permission granted by the State Excise Department to those who want to sell or distribute alcoholic beverages or drinks at a particular place. Every state has a different set of rules and regulations governing liquor, which shall be followed by every individual who wants to sell beer, hard drinks etc.

Types of Liquor License

In some states, there is a need to apply for a specific class of Liquor License. Applying for liquor license depends on the nature of liquor and the kind of business. Following are the different set of liquor licenses available in India

1. Beer and Wine Liquor License – The Restaurants and Bar, who are wishing to sell soft liquors like beers and wine go for this type of Liquor License. After this, the owners are not eligible to deal with hard liquors.
2. Restaurant Liquor License – Any restaurant who wants to serve any alcohol in their premises can go for this type of Liquor License. But it is noteworthy to mention that the percentage of region dealing with alcohol must be limited to forty per cent.
3. Tavern Liquor License – This type of license is necessary for that business, which though offers food items but makes up for half of their profits out of the alcohol sale.
4. Brewpub Liquor License – This type of License is required by those who make their wine and beer.

List of Liquor License issued in Delhi

There are various liquor licenses issued by different State Governments. Following is the list of licenses issued by Delhi government –

1. L–1 License – This License is granted to a company, partnership, society or proprietorship firm, which is running a manufacturing unit. Further, the State Excise Department grants this License. Also, for inviting applications regarding License, the State Excise Department issues Public Notice in leading Newspaper and on the official website.
2. L–3 License – Bottling Plants or Distilleries requires this type of License. The State Government issues tenders for issuing this type of license.
3. L–6 License – Retail vendors of Indian Liquor requires this type of License. Further, the State Government grants this license only to selected undertakings.
4. L–9 License – Any vendor dealing in the Retail sale of the liquor of foreign brand requires this license. Further, an L-1 License holder can only obtain this foreign brand license.
5. L-10 License – If anyone wants to get a license for the retail sale of both Indian and foreign brands of liquor, then they get it under L-10 License.
6. P-13 License – Hotels, clubs and restaurants can only obtain this license from the issuing authority. This license acts permission for the hotels, clubs and restaurants to serve foreign liquor in their premises during the hosting of any specific party or function on a particular day.
7. P-10 License – Government, grants this license to permit serving of liquor at any specific function or party or anywhere in the city except the public parks.
8. Others – The government grants various other licenses, which includes L-11, L-12, L-15, L-16, L-17, L-18, L-19, L-20, L-21, L-28, L-29, and L-30.

The Ambit of Liquor License

The scope of the laws regulating Liquor License covers –

1. The businesses involved in selling alcohol When the liquor can be sold
2. Where the liquor can be sold
3. The quantity of the liquor sold
4. In which container the liquor is sold
5. Cost for alcohol is served
6. Type of alcohol to be served
7. To whom alcohol can be sold
8. Manufacture and distribution of alcohol

The Need for Liquor License

Liquor License, in essence, is a license by which one gets permission to sell both alcohol and alcoholic beverages. If anyone wants to start a business dealing with manufacturing, sale or distribution of alcohol and alcoholic drinks, he/she needs to apply for a Liquor License. The Business which can apply for liquor license includes businesses ranging from restaurants, private clubs, bars situated in hotels, or other entities.

Liquor Laws in India

In India prevalent liquor license laws include –

1. As per Article 47 of the Indian Constitution, state governments are directed to improve their public health care and also to prohibit intoxicating drinks and drugs which are injurious to health. It states, “The State shall endeavor to bring about prohibition of the consumption except for medicinal purposes of intoxicating drinks and of drugs which are injurious to health.”
2. As per schedule VII of the Indian Constitution, the subject matter of the state list includes alcohol. Hence, the laws regulating the sale and consumption of liquor vary from state to state.
3. It is noteworthy to mention that in India, there are five dry States, which include Bihar, Gujarat, Nagaland, Manipur and the union territory Lakshadweep. Dry State means a state where there is a strict ban on the purchase, sale and consumption of the alcohol.
4. Further, anyone who is above the age of twenty-one can obtain a Liquor License. But, anyone who is below the age of twenty- five can consume neither alcohol nor alcoholic drinks.