In order to sell alcohol in India, one must first obtain a liquor licence. Liquor stores, pubs, clubs, discos, bars, hotels, and restaurants typically have a licence to sell alcohol. As a result, sellers must have a licence to sell alcohol; otherwise, selling alcohol is illegal and prohibited until a liquor licence is obtained. Neeraj Sachdeva, the Director of Lakeforest Wines elaborates on the steps to getting liquor license in India.
Liquor is more than just a drink served in restaurants, hotels, parties, and other social gatherings. It is associated with a country’s complex socio-legal background. Liquor is a sensitive issue for any state government to deal with because it is frequently associated with crimes and other violent activities. This is why each state government issues a liquor licence in order to regulate and control the manufacturing, production, and sale of liquor and other intoxicants. Thus, a liquor licence is a licence granted by the state excise department to anyone who wishes to engage in the manufacturing, import, export, transportation, possession, purchase, and sale of liquor and other alcoholic beverages.
Because liquor consumption and distribution laws differ from state to state, each state has its own age criteria for the legal drinking age. The following is a list of the legal drinking age in each state, 25 years in Delhi, Punjab, Haryana, Chandigarh, Maharashtra, and Dadra, as well as Nagar Haveli, Daman, and Diu. The Delhi Excise Department has proposed to the Delhi Government that the drinking age for wine and beer be reduced to 21, while hard liquor will remain at 25.
Any establishment that serves alcohol in India must have a valid liquor licence. According to the seventh schedule of the Indian constitution, liquor consumption, manufacturing, and distribution are issues pertaining to the state list. Because of this, each state has its own liquor laws. Neeraj Sachdeva, the Director of Lakeforest Wines explains, “Every government regulates alcohol sales, even for the registration of foreign liquor bar licences, to prevent minors from purchasing spirits, wine, beer, and liquor. For example, the requirements for a liquor licence vary in small towns, where new licences are frequently approved only when the population grows.”
While many Indian states grant a single liquor licence for all types and classes of alcohol, in some states, an application for a specific class of licence is required. As a result, in states where a permit is required for different classes of alcohol, the following general liquor licences are available in India.
Beer and Wine License– A Beer and Wine License is required for those who want to sell soft and mild liquors such as beers and wine. Once a Beer and Wine License is obtained, the licence holder is prohibited from dealing with any type of hard liquor.
Restaurant Liquor License– A Restaurant Liquor License is required for restaurants that want to serve alcohol on their premises. This licence is also known as a “All-Liquor License”. “However, this type of licence is only granted to restaurants whose primary source of revenue is the sale of food, with only a small percentage (no more than 40%) of sales coming from the sale of liquor,” informs Neeraj Sachdeva, the Director of Lakeforest Wines.
Tavern Liquor License- This type of licence is granted to businesses that, despite selling food, make half of their profits from alcohol sales.
Brewpub Liquor License– As the name implies, this type of licence is given to those who make/brew their own wine and beer.
Because the state excise department grants a Liquor License to those who wish to sell and/or distribute alcohol and alcoholic beverages, anyone involved or planning to venture in a business that deals with the sale/distribution or manufacturing of alcohol and/or alcoholic drinks must apply for a liquor license.
“A valid liquor licence covers a wide range of activities related to the manufacture, import, export, transportation, possession, purchase, and sale of liquor, depending on the legislation and laws of each state,” states Neeraj Sachdeva, the Director of Lakeforest Wines.
Thus, a liquor licence issued by the state excise department applies not only to businesses and entities involved in the sale of alcohol, but also to subjects such as when and where the liquor can be sold/served/stored, the quantity and container in which the liquor must be sold, the cost and type of alcohol that can be sold or served, and to whom the alcohol can be sold or served.
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