{"id":10975,"date":"2020-06-18T12:59:48","date_gmt":"2020-06-18T07:29:48","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=10975"},"modified":"2024-12-11T18:50:17","modified_gmt":"2024-12-11T13:20:17","slug":"liquor-license-cost-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/liquor-license-cost-in-india\/","title":{"rendered":"How much does Liquor License cost in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A liquor license is a type of permit given by the State\nExcise Department to the people who wants to sell alcoholic beverages at the\ncertain place. Each state government has laid down various rules and\nregulations for granting the licenses, which has to be followed by the person\nin the liquor business and wants to sell hard drinks. <\/p>\n\n\n\n<p>The license is issued only after the examination and inspection of the details mentioned by the license holder. The license is granted after the prescribed <a href=\"https:\/\/corpbiz.io\/liquor-license\" title=\"Liquor License\"><strong>liquor license<\/strong><\/a> cost is paid by the license holder. Selling liquor without a liquor license is <strong><em>an illegal act<\/em><\/strong> and is<strong> <em>a punishable offense<\/em><\/strong> under the eyes of various state laws. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/liquor-license-cost-in-india\/#New_Liquor_License_Cost_policy_released_by_Uttar_Pradesh\" >New Liquor License Cost policy released by Uttar Pradesh<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/liquor-license-cost-in-india\/#Importance_of_liquor_license_cost_in_Delhi\" >Importance of liquor license cost in Delhi<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/liquor-license-cost-in-india\/#What_is_Liquor_License_Cost\" >What is Liquor License Cost?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/liquor-license-cost-in-india\/#Why_Cost_or_Investment_Required\" >Why Cost or Investment Required?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/liquor-license-cost-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"New_Liquor_License_Cost_policy_released_by_Uttar_Pradesh\"><\/span>New Liquor License Cost policy released by Uttar Pradesh <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Uttar Pradesh government has approved the states <strong>2020-21 excise policy<\/strong>, in which it has\nincreased the liquor license cost fee on country-made liquor <strong>by 10%, and beer by 15% and also foreign\nliquor by 20%.<\/strong> The decision has taken by the Cabinet, and the hike in\nlicense fee is likely to increase in prices with effect from <strong>1st April 2020<\/strong>. <\/p>\n\n\n\n<p>Another highlight of the policy is that from now <strong><em>onwards, beer shops can also sell wines<\/em><\/strong> along with the Indian made foreign liquor (IMFL) shops in Uttar Pradesh. The state government has made this simple and transparent excise policy that would remove cartels. The <strong><em>renewal of licenses<\/em><\/strong> will be done by way of e-lottery. Under this new policy, one person will be allowed to have only two (liquor) shops in the state.&nbsp; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Some Highlights of the new policy of liquor license cost<\/h3>\n\n\n\n<ul>\n<li>The new policy aims at the <strong><em>higher excise duty realization<\/em><\/strong>\ndue to ease of doing business through decentralization of power,\nrationalization of duty structure, availability of brands, use of modern\ntechnologies for quality assurance, and high-end quality products all over the\nyear. &nbsp;<\/li>\n\n\n\n<li>The new excise policy also provides <strong><em>a\nspecial license for serving liquor on special trains<\/em><\/strong> and cruises, which\nwas free earlier. Under the new norms, licenses will also be given to airport\nlounges and hotels located outside airports.<\/li>\n\n\n\n<li>The new policy has fixed an <strong><em>annual license fee for hotels,\nrestaurants, and clubs<\/em><\/strong> in category-1 cities for serving liquor at <strong>Rs 10 lakh<\/strong>, i.e., in Gautam Buddha\nNagar, Ghaziabad, Municipal Corporation of Kanpur Nagar, Prayagraj, Lucknow,\nand Varanasi).&nbsp; <\/li>\n\n\n\n<li>The license fee for category-2 cities has been\nfixed at <strong>Rs 7.5 lakh<\/strong>. This includes\nthe municipal corporation areas of Gorakhpur, Mathura, Ayodhya, Aligarh,\nBareilly, Firozabad, Meerut, Jhansi, Moradabad, and Saharanpur.<\/li>\n\n\n\n<li>While the license fee for category-3 cities is <strong>Rs 5 lakh<\/strong>, for category-4 cities, it is\n<strong>Rs 2.5 lakh.<\/strong><\/li>\n\n\n\n<li>Through these measures, the government has also\nset a target of Rs 31,600 crore in excise collection for FY21. The government\nhas announced that bar codes will be placed on all liquor bottles so that <strong><em>consumers\ncan check the authenticity of the labeled contents<\/em><\/strong>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance_of_liquor_license_cost_in_Delhi\"><\/span>Importance of liquor license cost in Delhi <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Delhi Court states that there is <strong><em>no service tax of any kind to be\nlevied on liquor license costs<\/em><\/strong>, in accordance with the GST Council&#8217;s\ndecision. Every state in India has its own laws for alcohol and the\nrequirements concerning liquor license permits.<\/p>\n\n\n\n<p>For instance, the sale and distribution of liquor in Delhi\nis governed by the <strong>Delhi Liquor License\nRules, 1976<\/strong>, which mention all different kinds of licenses that one would\nneed in order to be allowed to serve liquor in a city. It further states other\nrules to ensure quality liquor as well as the safety of the consumers.<\/p>\n\n\n\n<p>However, each state has its very own local authority, which looks into the authorization of licenses. This authority is known as an <strong>Alcoholic Beverage Control Agency (ABC Agency<\/strong><sup><a href=\"https:\/\/www.abc.ca.gov\/\"><strong>[1]<\/strong><\/a><\/sup><strong>)<\/strong>, whose job is to check on and regulate all sales and distribution of liquors.<\/p>\n\n\n\n<p>It also has a specific license quota dictating the possible number of restaurants and other places selling liquor within a certain city during a specific time. There may be no licenses available for sale at all sometimes; hence, it leads to problem in acquiring the liquor permit or a restaurant permit. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-for-obtaining-liquor-license-in-india\/\">Procedure for Obtaining Liquor License in India\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Liquor_License_Cost\"><\/span>What is Liquor License Cost?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The cost of obtaining liquor license differs from state to state. Following are the various types of cost that are paid during the process of obtaining liquor license:<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"538\" height=\"276\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-113.png\" alt=\"Liquor License Cost\" class=\"wp-image-10976\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-113.png 538w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-113-300x154.png 300w\" sizes=\"(max-width: 538px) 100vw, 538px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">Temporary Liquor License Cost<\/h3>\n\n\n\n<ul>\n<li>The temporary club license or party permit fees\nfor bigger parties (more than 100 people) is <strong>rupees 15,000<\/strong>. But smaller parties (below 100 people) is <strong>rupees 10,000<\/strong>. <\/li>\n\n\n\n<li>For temporary club licenses for liquor parties\nin smaller towns, such as Navi Mumbai, where the population is below 20 lakh,\nthe mandatory license will cost Rs10,000 for above 100 members and Rs7,000 for\nbelow 100 members.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Liquor License Cost for Private Party in a Resort or a Flat <\/h3>\n\n\n\n<ul>\n<li>As per excise department rules, the FL-4 license\nis needed to host a private liquor party in a flat or at a resort, which\npresently costs <strong>Rs 13,000<\/strong> across\ncities in the state. <\/li>\n\n\n\n<li>Consumers must have the license even if they are\ndrinking with friends in an apartment or a house party organizer, which is\nbooked for illegal possession of liquor. While only if few friends are together,\nthe consumer must at least have a daily drinking permit.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Liquor License Cost in Permit Rooms<\/h3>\n\n\n\n<ul>\n<li>License fee for permit rooms is <strong>rupees 544,000, <\/strong>and that for beer shops\nis<strong> rupees 150,000.<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Liquor License Cost For a State: <\/h3>\n\n\n\n<ul>\n<li>The candidate has required to submit application\nexpenses alongside the application form. The charge for the alcohol permit runs\nfrom <strong>Rs 5,000 to Rs 15,000 or more<\/strong>.\nFurther, the application charge contrasted from state to state according to\npredominant state laws.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Cost_or_Investment_Required\"><\/span>Why Cost or Investment Required?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The question arises of what can be a cost to open a liquor\nshop. It is wise to start a business only if there is more return than the\ncapital investment plus direct and indirect expenses, especially for a long run.\nSee. Firstly, to have liquor license, one needs to deposit application fee and\nthen submit liquor license costs.&nbsp; <\/p>\n\n\n\n<p>This fee can be in few thousand (Rs. 5,000 to Rs. 15,000 or\nmore), which can vary with the type of license. Other than this, one also requires\na licensed premises to stock of liquor and staff to serve or can sell liquor.\nBefore starting, one needs to calculate the initial cost of starting a liquor\nshop, which approximately cost from Rs. 50 lakh to Rs. 60 lakh depending on the\nlocation and also various other factors.<\/p>\n\n\n\n<p>The cost of obtaining the alcohol license will shift. In\nsome cases, one will required to pay in thousands for the application fee and\nplus taxes. The liquor license cost could convert into the huge number of\nprofits.<\/p>\n\n\n\n<p>There are normally different types of licenses for various sorts of organizations \u2013 for example, opening an alcohol store will need a different kind of license than only running a bar. Subsequently, as a major aspect of the application, one must compose a clear portrayal of the sort of business that will be running. <\/p>\n\n\n\n<p>It requires ought to incorporate information on whether the license holder means to offer liquor for consumption on the premises or on the rate of the aggregate income originates from the sale of liquor. This is vital as a few sorts of liquor require a different liquor license in comparison to others. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong>Licensing Act\n2003<\/strong> says that one requires a permit to sell alcohol in India. Even if one\nwants to give away alcohol for free, he required to have this permit. It is\nbecause the mere act of giving alcohol away for free is seen as an incentive\noffered thee customers to purchase from you- one that is a part of your pricing\nstructure.&nbsp; <\/p>\n\n\n\n<p>Selling liquor in a restaurant is an absolutely nice way to make benefits given that alcohol, in general, has low labor costs and high-benefit margins. So, if you&#8217;re all set to open up a restaurant or a bar, a liquor license is one of the most prime things you need to get as well as plan for in advance and <strong><em>know about the liquor license cost<\/em><\/strong>.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/obtain-liquor-license-in-mumbai\/\">\nHow to obtain Liquor License in Mumbai\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A liquor license is a type of permit given by the State Excise Department to the people who wants to sell alcoholic beverages at the certain place. Each state government has laid down various rules and regulations for granting the licenses, which has to be followed by the person in the liquor business and wants [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":10979,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[649],"tags":[675],"acf":{"service_id":"395"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":150341,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/10975"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=10975"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/10975\/revisions"}],"predecessor-version":[{"id":67808,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/10975\/revisions\/67808"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/10979"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=10975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=10975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=10975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}