The Excise, Entertainment, and Luxury Tax Department of the Delhi government has issued a significant order regarding liquor licenses for the next financial year. For the 2026-27 period, the license fee for serving liquor in hotels, clubs, and restaurants has been increased by 10%. This new fee structure will be effective from April 1, 2026, and will remain valid until March 31, 2027. This decision is expected to directly impact the cost of alcohol served in dining and entertainment venues across the capital.
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Which places will see a price rise?
The recent hike specifically targets the Hotel, Club, and Restaurant (HCR) category. This means independent restaurants that serve liquor (L-17/L-17F) and those serving only beer (L-18/L-18F) will have to pay more for their licenses. The increase also covers restaurants at the airport (L-19/L-19F) and bars on luxury trains.
Because the establishment owners have to pay higher fees to the government, it is very likely that they will increase the prices on their menu to manage their costs. Currently, the department is extending the existing 2020-21 excise policy as the new policy is still being drafted. This ensures that the supply of liquor remains smooth without any shortage after March 31.
Strict deadlines and penalties for renewal
The Excise Department has laid down a strict timeline for license holders to renew their permits via the e-Abkari portal. The basic license fee must be paid by February 28, 2026. If a business owner misses this date, they can still pay between March 1 and March 31, 2026, but they will have to pay an extra 25% surcharge.
If the renewal is delayed beyond April 1, 2026, a heavy penalty of 100% will be charged. The department has made it clear that if the fees are not paid on time, they have the authority to stop the Transport Permit (TP), which is necessary for moving liquor stock. This strict approach is taken to ensure all revenue is collected before the new financial year begins.
