JAMMU: The Government of Jammu and Kashmir has notified the Excise Policy 2026–27, which will come into effect from April 1, 2026, and remain operational until March 31, 2027, unless revised earlier. The policy places strong emphasis on social awareness, responsible consumption, revenue optimisation, prevention of illicit trade, and complete digitalisation of the liquor supply chain across the Union Territory.
According to the official notification, the policy seeks to promote greater public awareness regarding the harmful effects of alcohol and substance abuse, encourage a gradual shift from high-alcohol to low-alcohol-content beverages, rationalise taxes and duties to enhance public revenue, and curb bootlegging and smuggling from neighbouring States and Union Territories. The policy also aims to strengthen the local liquor industry, check illicit distillation, generate employment opportunities, and ensure transparency through end-to-end digital tracking from production to retail sale.
The policy provides a comprehensive regulatory framework for the issuance of various excise licences, including wholesale, retail, hotel, bar, club, military canteen, industrial alcohol, bottling plants, distilleries, breweries and wineries, in accordance with the provisions of the J&K Excise Act, 1958, and the relevant rules. Permissions for serving liquor at social functions in private and commercial establishments will continue to be granted upon payment of the prescribed fee.
For Type A and Type B licences, a non-refundable processing fee of ₹1 lakh has been fixed, along with a one-time upfront fee of ₹10 lakh for the issuance of a new JKEL-1 licence. The policy also facilitates the introduction of BIO brands, import of liquor from approved sources, and expansion of wine and beer segments. In a bid to promote tourism and responsible consumption, retail sale of beer and ready-to-drink (RTD) beverages will be permitted at tourism establishments, airports and other designated locations.
The policy allows rooftop, terrace and balcony service for Type B licensees within municipal limits on payment of an additional 50 percent annual licence fee, subject to strict safety, visibility and security norms. Penalties have been prescribed for unauthorised liquor service at social functions, ranging from ₹30,000 for the first violation to ₹1 lakh for repeated offences.
Retail liquor vends under Type C (JKEL-2) will be allotted through a transparent e-auction mechanism. Participation will be restricted to domiciles of Jammu and Kashmir above 21 years of age who fulfil prescribed property, solvency and character requirements. Detailed provisions have been laid down regarding premises clearance, operational timelines, temporary structures, electricity supply, fire safety compliance and distance norms from educational and religious institutions.
The policy mandates strict adherence to Minimum Guaranteed Revenue (MGR) and Minimum Guaranteed Quota (MGQ) norms. Failure to deposit MGR within stipulated timelines may result in suspension or cancellation of licence, forfeiture of deposits and re-auctioning of vends. Provisions for quota transfer of JK Special Whisky and JK Country Liquor have also been incorporated to safeguard government revenue.
As part of the policy framework, the Excise Department has announced that allotment of retail liquor vends (JKEL-2/Type C) will be conducted exclusively through a secure and transparent online e-auction system. The auctions will be hosted on the department’s official procurement portal, while detailed bidding procedures and instructions will also be made available on the Excise Department’s website.
Locations that fail to attract adequate response during the initial e-auction will be re-auctioned under the same process. The department has also reserved the right to cancel auctions at locations where bidder participation is insufficient or where bid values are found to be disproportionately low in comparison with the area’s sales potential or previously quoted bids, even after declaration of the highest (H1) bidder.
To ensure responsible participation, stringent eligibility criteria have been prescribed. Applicants must be at least 21 years of age, domiciles of Jammu and Kashmir, and possess immovable property equivalent to 100 percent of the minimum reserve bid value, or alternatively provide property worth 50 percent along with a Bank Guarantee for the remaining amount. Applicants must also possess a clean criminal record and submit a character certificate issued by the concerned District Superintendent of Police.
Following declaration as the H1 bidder, applicants must obtain premises clearance from the District Magistrate, who is required to communicate approval or rejection within 15 days, failing which the premises shall be deemed approved. However, such clearance will not be required where liquor vends were operational at the same premises in previous years, in order to prevent loss of government revenue. The licensing authority may also permit immediate operationalisation of vends in accordance with applicable rules to avoid procedural delays.
In cases where successful bidders are unable to secure private premises, District Magistrates have been authorised to provide government land within 15 days for setting up temporary structures. Power supply to such temporary vends will be ensured within five days by the Power Development Department, subject to payment of electricity charges by the licensee. License holders will also be required to maintain adequate fire safety arrangements.
For issuance of Immovable Property or Solvency Certificates, vendors must apply within 20 days of licence issuance, and the competent authority is required to issue the certificate within one month under the J&K Public Service Guarantee Act, 2011. Failure to adhere to the stipulated timeline will result in the certificate being deemed issued.
Overall, the Excise Policy 2026–27 seeks to strike a balance between public health concerns, economic interests and regulatory efficiency, while strengthening governance, ensuring transparency and enhancing revenue management in the excise sector of Jammu and Kashmir.
