To sell alcoholic beverages, an official license is required, which is why a liquor license is required in Mumbai. Liquor cannot be sold without a license in most states. That is why restaurants and companies that sell alcohol must apply for a liquor license. Buying, carrying, storing, and consuming alcoholic beverages without a proper license is illegal.
Did You know?
The excise department in Mumbai issues liquor licenses for the purchase and sale of liquor.
Types of Liquor
In India, there are primarily 3 kinds of liquor manufactured for consumption.
- Indian Made Foreign Liquor (IMFL) — This phrase refers to western-style hard liquors created in India, such as whiskey, rum, and vodka.
- Country Made Liquor - These are traditional recipes like fenny, toddy, and so forth.
Types of License
There are two types of licenses, namely-
Wholesale Liquor License
This license allows an individual with a Form C.I.W II license to sell duty-paid country liquor in wholesale quantities. Wholesale liquor licenses are further divided into the following categories:
- Wine wholesale licenses are used as trade and import licenses to bypass a customs border.
- License to allow duty-paid nation storage and wholesale to retail outlets.
- License to sell foreign liquor wholesale.
The procedure for obtaining a Wholesale License is mentioned in Part III of the Bombay Prohibition Act, 1949. It stipulates that a person who requires a license must apply to the Commissioner through the Superintendent of the district in which the person wants to open a warehouse to stock country liquor. The superintendent verifies the information provided in the application and then ensures that the warehouse buildings or rooms used for the sale of liquor meet the requirements of Rule 15. In addition, the legislation specifies the requirements for warehouse facilities.
Retail Liquor License
This license refers to a person who holds a Form C.L.III or C.L./F.L/license. Retail liquor licenses are further divided into the following categories:
- Club License Permit Room Permit
- Mild Liquor and Wine Bar License Beer Shoppe License
- Licenses for wine bars and wine shops
On License and Off License
- If the liquor you provide is meant to be drunk on the premises, you'll require a license. Bars, restaurants, and other companies that require a license are examples.
- If you do not plan for the alcohol to be drunk at the location where it is sold, you will require an off-license. Liquor stores, food stores, and drug stores are examples of enterprises that need an outside license.
If all of the requirements are met, the applicant can acquire a vendor license or a written order allowing a vendor to sell foreign liquor. This clause also makes it easier to obtain an entrepreneurial license if the following conditions are met:
- The licensee's foreign liquor stock must be kept in government-approved godowns (save for disposal at the store).
- All leases, expenditures, and other expenses associated with the warehouse and monitoring must be paid by the liquor owner.
If all of the requirements are met, the applicant will be granted a hotel license, or a formal order will be issued allowing hotel management to sell foreign liquor. Before obtaining the license, the government determines that the hotel has enough people to handle the permits.
Under the following conditions, the applicant can apply for hotel permits.
- Every permission holder who lives or stays at the hotel is sold alcohol.
- Liquor sales are not permitted in any hotel room accessible to the general public.
- Any officials of the excise institution (if there is any) for the issuance and supervision of licenses on the property or the monitoring of the issuance and consumption of imported liquor within its bounds are required to remit their expenses.
Documents Required for Obtaining a Liquor License
- Name of the Applicant
- Address Proof of the applicant
- ID proof of the applicant
- Application Form
- Copy of Partnership Deed / MOA / AOA / Bye-laws of society depending upon the type of organisation
- Copy of sale deed/rent deed along with NOC from the landlord
- Building Plan
The following are the stages for obtaining a liquor license in Mumbai.
Step 1: Get an ₹10 court stamp.
A court fee stamp of ₹10 must be obtained from any court
Step 2: Go to the office that issues permits.
The applicant must go to the Old Customs House, popularly known as the Collectors Office, in South Mumbai's Fort neighbourhood. The regional excise offices in Malvani (Malad West), Andheri, Bandra, and Chembur also offer this service.
Step 3: Get the application form in the mail.
When the applicant arrives at the office, the competent authorities will hand out the application form. The form is completely free to use.
Step 4: Fill in the Blanks
In the application form, the applicant must fill in the following information.
- The applicant's name
- Residential Address
- Date of Birth
Step 5: Stick the stamp in place.
After filling out all of the information on the application form, the applicant must stamp it with the court fee stamp.
Step 6: Complete and submit the application
The applicant must send the application form, as well as pictures, photo identification, and evidence of address. The applicant must pay the relevant fee depending on the type of license when applying.
Also Read: How to Apply for a Kirana Store Licence
Structure of Fees
The following is the fee schedule for obtaining a liquor license:
- For larger parties (over one hundred people), a cost of ₹15000 is required to obtain a provisional club license or party permits, and a fee of ₹10000 is required for smaller events (below one hundred people).
- A license in the name of FL-4 is required by the excise department to host a private liquor party in an apartment or resort that costs more than ₹30000, according to the laws. All customers should have this license; otherwise, the party organiser may be charged with illegal liquor possession.
- Permit rooms pay ₹5,44,000 in license fees, while beer businesses pay ₹1,50,000.
Ethyl Alcohol is present in liquor, which is a harmless liquid. It's made by distilling grains, fruits, or vegetables that have already been fermented with alcohol. Liquor refers to any liquid that contains alcohol. The above article provides the depth analysis of the liquor license in Mumbai, types of permits, fee structure, how to get a liquor license, etc. Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.