The need for a liquor license stems from the fact that selling alcoholic beverages requires legal authorization. Without them, no one is permitted to sell alcohol thus states must get Liquor Licenses. For this reason, restaurants and businesses that sell alcohol need a Liquor License. Liquor Licenses in Punjab are issued by the Punjab Excise Department, which also handles License renewals once they expire. This blog aims at analyzing the procedure for obtaining a Liquor License in Punjab.

Liquor License in Punjab

Liquor License in Punjab is must to be obtained by every businessmen who is engaged with alcoholic beverages in the state. The state has prescribed certain rules and regulations by which the Liquor License in Punjab will be regulated. The one complying with it will be granted the license to run in the state. Thus manufacturing, selling or disposing of Liquor required license to be obtained at the initial time of process.

2020 Excise Policy Major Amendments

The department solicited applications for the renewal of groups or zones of 2019-2020 for the year 2020-2021 through a public notice following the approval of the excise policy 2020-21.

Each group’s or zones minimum guaranteed revenue will be set at an amount that is 8% more than it was the previous year.

Licensees must apply for an application together with the Rs 10 Lakhs renewal fee and any prior payments. Additionally, a written proof that they agreed to deposit 12% of any revenue above the group or zone’s minimum guaranteed revenue by March 2020.

Eligibility Criterion

An application for a liquor license in Punjab may be made by any of the following categories of applicants:

• A person
• An organization that has been incorporated under the Companies Act
• A partnership or firm.

Applicable Fees

Under these guidelines, the following types of charges are payable for the Punjab Liquor License:

• Predefined charges
• Calculated charges
• Auction charges
• Tender charges

The following list mentioned below includes the fees for both granting and renewing a liquor license in Punjab. It will be assessed at the given rate:-

• Grant of license in Form L-2 for the retail selling of alcohol costs Rs. 5,000 (One time)
• Renewal of Form L-2 license [for the retail selling of alcoholic beverages]: Rs. 1, 50,000 per year

Exemption from Fee Payment

Form L-16 does not require payment for a Punjab Liquor License for the reduction of country spirit.

Fixed and Calculated Charges

Form L-17, Punjab Liquor License-

In addition to the fee determined in accordance with the sale, a license to sell denatured spirits will be provided for a fixed fee using form L-17.

Here are the prices for fixed fees:-

• 500 per month for a one-year license that allows for the simultaneous possession of 500 gallons
• 50,000 per year for a license that is valid for a year to possess more than 500 gallons at once

The following scale must be used as a basis for the evaluation:-

• Imperial gallons cost twenty-two rupees.
• Twelve dozen quartz bottles for forty-four rupees, with a license
• Upon payment of a charge of Rs. 5, a license in form L17 must be issued for the retail sale of rectified spirit denatured with 2% kerosene for use as motor fuel.

Note: The assessed charge will be recovered at the time the license is issued in form L 32. The fixed fee is payable in advance. The amount of denatured spirit for which an assessment fee has already been paid in Punjab will not be assessed.

Form L-17-B for Punjab Liquor License-

In addition to the charge determined based on the sale, a license in form L17-B must be given for the sale of methamphetamine/methanol. Rates for fixed fees are as follows:-

A one-year liquor license costs $3,000 per year and allows for the temporary storage of 500 gallons.

The following scale must serve as the basis for the evaluation:-

• Imperial gallons cost twenty-two rupees.
• Twelve bottles cost 22 rupees each, and the licensee has them

Note*It should be noted that the assessed charge will be recovered when the liquor permit is issued in form L-32 A. The fixed fee is payable in advance. As long as no assessment cost is imposed on the amount of methyl alcohol or methanol for which a fee has already been paid in Punjab.

Assessed Charges

The following Punjab liquor permits are awarded in exchange for fees:-

• Selling just to the general public at wholesale and retail prices foreign alcohol
• Foreign alcoholic beverage sales in restaurants bars
• Restaurants that sell imported alcohol
• Selling foreign alcohol to a worker who is working abroad
• Selling foreign alcohol in resorts or bungalows
• Foreign alcoholic beverage sales in the dining coaches of trains
• Foreign liquor is sold in the train rest areas.
• Selling of foreign alcohol at the bar permanently affixed to a theatre, a movie theatre, or a similar entertainment venue

Auction Fee

The Excise Commissioner awards Liquor Licenses in exchange for payment of a set price and subject to the following conditions:-

• A license to sell alcohol that is intended for use on any of the premises and is intended for country-wide consumption
• A license to sell alcohol for off-premises consumption that covers the retail sale of country spirit
• A permit to sell alcohol that includes country spirit in retail settings only on special occasions.
• A permit for the production of country-fermented alcohol and its retail sale

How to Apply for a Punjab Liquor License?

Here, a step-by-step explanation of the application process for obtaining a Punjab Liquor License is mentioned:-

Step 1: Visit the Excise and Taxation Department’s official website to order to apply for a Punjab liquor license. Select the e-licensing option on the home page.

Step 2: The link will reroute to the new page. From the drop-down menu next to the Application type, choose an application for something other than a retail license.

Step 3: After choosing the application type, the new liquor license application form will be shown. The following information must be provided on the Punjab Liquor license application:

• Application Information: PAN Number and Name
• License type information includes the type of license required, the subcategory, and the legal structure of the business.

Step 4: The application form for additional information will be presented after choosing the license type and business constitution from the drop-down box.

• Details of the proposed business’s address
• A permanent home address

Step 5: After supplying the requested information, you can examine the application by selecting the Review button at the bottom of the page.

Step 6: After ensuring the information is accurate, press the submit button. The link will take you to the page for electronic payments.

Step 7: You can use net banking to pay for the license online. For information on fees, see the aforementioned document.

Step 8: After the licensing fee has been successfully paid, a slip with the application number will be seen, and the application will then be sent to the appropriate authority login.

You must note it down the application number so that you will have it for future use.

Conclusion

The Punjab Excise Department issues Liquor Licenses to people who sell and distribute alcoholic beverages. Each state government regulates the purchase and use of alcohol inside its borders. The Punjab Liquor License Rules, 1932^[1], enacted by the Punjab government, govern the sale and use of alcoholic beverages.

A legal platform called BizAdvisors.io helps anyone who wishes to get a liquor license in Punjab. You can reach out to our legal professionals whenever you need assistance with the same.

Read our article:A Complete Procedure of Obtaining Liquor License in Delhi