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All About Liquor Compliance (Part 1)

Intro :

In India, selling liquor is one of the most profitable businesses. 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.


What is a Liquor License?

In order to sell alcohol in India, one needs to procure a liquor license. Usually, liquor stores, pubs, clubs, discos, bars, hotels, and restaurants own a license to sell alcohol. So, the sellers are required to hold a license to sell alcohol, otherwise, the selling of alcohol is illegal and prohibited until registration for a liquor license is done.

Liquor is more than just a drink that is served in restaurants, hotels, parties, and functions. It is associated with the complex socio-legal backdrop of a nation. Often associated with crimes and other violent activities, liquor is a sensitive issue to deal with for any state government. This is why in order to regulate and control the manufacturing, production, and selling of liquor and other intoxicants, each state government allots a liquor license. Thus, in simple legal terms, a liquor license can be defined as a license granted by the state excise department to anyone who wishes to indulge in the manufacturing, import, export, transport, possession, purchase and selling of liquor and other alcoholic beverages.

The liquor license for online selling of liquor in India is also mandatory and can be acquired from the Excise Department of the State Government.

Liquor license regulates:

  • Businesses allowed to sell alcohol
  • When and where businesses can sell alcohol
  • The quantity of alcohol being sold at a time
  • The alcohol charges allotted by businesses
  • The type of alcoholic beverages sold
  • To who alcohol can be sold
  • Businesses permitted to manufacture and distribute alcohol

What is the legal drinking age in different states in India?

Since liquor consumption and distribution laws are governed differently in different states, each state has its own age criteria when it comes to the legal drinking age. Here is a list of the legal drinking age in various states:

  • 25 years: Delhi, Punjab, Haryana, Chandigarh, Maharashtra and Dadra, and Nagar Haveli, Daman and Diu.
  • The Delhi Excise Department has sent a proposal to the Delhi Government for lowering the drinking age for wine and beer to 21, although it will still remain 25 for hard liquor.

In Maharashtra, a liquor license obtained from a Government Civil Hospital is required to drink, although this is largely not enforced. Additionally, state legislature empowers district governments to ban alcohol entirely. As a result, three districts, Wardha, Gadchiroli and Chandrapur have imposed a total ban on the production and sale of alcohol.

  • 23 years: Kerala
  • 18 years: Rajasthan, Goa, Himachal Pradesh, Andaman & Nicobar, Puducherry, Sikkim, Jammu and Kashmir, and Karnataka.
  • 21 years: Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Jharkhand, Maharashtra (only for beer), Meghalaya, Mizoram, Madhya Pradesh, Odisha, Tamil Nadu, Telangana, Tripura, Uttar Pradesh, Uttrakhand, and West Bengal. 
  • States where alcohol consumption is banned: Bihar, Gujarat, Lakshadweep (Consumption is legal only on the resort island of Bangaram), Manipur (Partial prohibition since 2002), and Nagaland.
  • Arrack has been banned in Karnataka since 1 July 2007.

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