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Navigating the Spirits: A Guide to Liquor Licensing for Restaurants

Nikita P
December 06, 2024
5 min read

Introduction

Alcohol sales in pubs, hotels and other establishments are only allowed if the vendor possesses a valid liquor permit, sometimes referred to as a liquor license. While the government oversees it, each Indian state has a different state body in charge of awarding this licensing. Moreover, some restrictions are specific to different cities.

States have different regulations regarding dining establishments, alcohol consumption, and age restrictions. However, the government forbids the delivery of alcoholic beverages to residences. Purchases may only be made in person from approved merchants. Therefore, it is important to understand how to apply for a liquor license for your restaurant.

Different Types of Restaurant Liquor Licenses

There are four types of restaurant liquor permits in India. The primary factors are the type of spirits one must sell and the profit margin.

license for Wine and Beer Liquor

The restaurant’s owner must get this license if they intend to serve just wine and beer to customers. The sale of distilled spirits or any other kind of alcohol is prohibited. Small restaurants usually receive this type of permit.

license for Brewpub Liquor

If the restaurant owner makes their own wine and beer, they must have a brewpub liquor permit. Furthermore, a specific license is needed in many states to serve this wine or beer to customers.

license to Serve Alcohol in Restaurants

This type of liquor permit is often known as a “all-liquor license.” If the restaurant owner intends to offer wine, spirits, and beer to customers on the premises, it is required. Sales of food items, including alcohol, are frequently the restaurant owner’s main source of revenue.

license for Tavern Liquors

A restaurant owner must get this type of liquor license if they sell alcohol for half of their earnings and meals for the other half. Depending on the guidelines established by the state government, it might not exist at all.

How to Apply for a Restaurant Liquor License

Before starting a restaurant, the owner must apply for a liquor permit from the Excise Department of the state government. Use these simple procedures to apply for a liquor license:

  • The laws pertaining to the sale, purchasing, and use of alcoholic drinks vary from state to state. First, one has to be aware of all the rules set forth by the state government in the area where the restaurant is located. One may also check out the local liquor stores after reading the rules on the website of the state excise agency.
  • Next, visit your state’s website and fill out the application for a restaurant liquor license. You must create and log in to your online account. The appropriate documentation will be submitted and shown when the restaurant is inspected by the appropriate Excise Officer. After that, a report will be sent to the higher authorities that issue liquor permits.
  • Age, prior experience in the culinary sector, and a clean personal record are all required pieces of background information. Additionally, the assertion’s supporting evidence must be given.
  • The application form has to be filled out with all relevant details and sent to the relevant state authorities. The information also includes the type of liquor license that the restaurant owner wants to get.
  • After verification, the state government will release a notice to the public identifying the type of permit the restaurant owner has asked for and its name. It needs to be visible to everyone in the community for a predetermined period of time. If any local residents object during this time, the applicant has the right to defend its plan.
  • The location must be a certain distance from any local parks, schools, hospitals, or places of worship.
  • Following final approval, the applicant must make the necessary payments in line with the requirements. Finally, a liquor permit for a restaurant will be given.

Renewing the restaurant’s liquor license

The liquor license is valid for a year after it is issued. The proprietor of a restaurant is usually required to renew the liquor permit once a year. The necessary expenses are paid upon the completion of the renewal application. It is recommended that one fully comprehends each of these costs before operating a restaurant. This would provide protection against unforeseen financial circumstances.

The authority may, however, occasionally cancel a person’s liquor license if they are proven to have sold alcohol to minors, sold alcohol on dry days as required by the state, or disregarded local authorities’ regulations.

Read blog : Liquor License Cost in India

Documents needed to submit an application for your restaurant’s liquor license

  • A dining house permission registration certificate (issued by the DCP)
  • State Fire Service Department No Objection Certificate
  • NOC issued by the local government.
  • A list containing the names of the directors of a corporation
  • Evidence on the restaurant’s legal status, including if it is a partnership firm, corporation, or another kind of organisation
  • Evidence of the restaurant’s lawful ownership
  • A certification attesting to the restaurant’s or hotel building’s completion
  • Trade license from the local government, such as the GHMC, NDMC, etc.
  • Evidence that the applicant has been assessed for both income tax and sales tax
  • Verification of the applicant’s residence and identity
  • Returns of income taxes
  • An affidavit attesting to the applicant’s lack of criminal past and outstanding government debt

Indian states’ laws pertaining to alcohol

The legal drinking age in our nation varies from state to state. In Meghalaya, the drinking age is 21, but in New Delhi, it is 25 years of age or older. The legal drinking age in the state of Goa is 18. Because of this, the legal drinking age varies greatly across the nation.

The union territory of Lakshadweep and the states of Gujarat, Nagaland, and Bihar all have laws against drinking alcohol. In states such as Manipur, alcohol consumption is partially forbidden. The states also have laws that forbid a number of sorts of alcohol. There are dry days in each state where it is absolutely illegal to sell or consume alcohol.

Additionally, the price of alcoholic beverages varies from one state to another. States have different spirits tax rates than union areas, for instance. It implies that the whole cost of an alcoholic beverage may differ from one state to another.

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