Published Sep 12, 2026 | 4:52 PM ⚊ Updated Sep 12, 2026 | 4:52 PM
Andhra Pradesh announces 2026–27 Liquor Policy
Synopsis: According to Andhra Pradesh’s new Excise Policy for the year 2026–27, the existing 3,736 shops will continue as they are. For license renewal, the existing licensees will have to a pay Renewal Retail Excise Tax (RET) equivalent to 38 percent of the annual RET, apart from the annual RET and applicable permit-room RET.
The Andhra Pradesh government has issued a gazette notification permitting the renewal of liquor shop licenses for one year. Under the latest policy, a permit room is now mandatory in every shop.
According to the new Excise Policy for the year 2026–27, the existing 3,736 shops will continue as they are. For license renewal, the existing licensees will have to pay a Renewal Retail Excise Tax (RET) equivalent to 38 per cent of the annual RET, apart from the annual RET and applicable permit-room RET.
For shops that do not come forward for renewal, fresh applications will be accepted and allocated through a lottery.
Apart from the mandatory permit room, the new policy also suggests a fine of up to ₹10 lakh for MRP violations. A rule has also been established mandating four CCTV cameras in every shop, and those must be linked to an AI Command Centre.
The Revenue (Excise) Department clarified the 2026–27 liquor shop policy, licensing rules, Retail Excise Tax, renewal RET, compounding of violations, and other matters by issuing a series of Government Orders (GOs 579, 580, 581, 582, and 583) on Friday, 11 September.
Meanwhile, the annual RET for a permit room licence is ₹5 lakh in areas with a population of up to 50,000 and ₹7.50 lakh in areas with a population exceeding 50,000. The fee can be paid in three instalments.
The 2026–27 excise licensing period will run from October 1, 2026, to September 30, 2027. The government has retained the total number of 3,736 liquor shops as per the 2024–26 policy.
Among them, 3,396 shops will be in the open category, and 340 shops will be reserved for toddy-tapper communities (Geetha Kulaalu).
Rather than increasing or decreasing the number of shops under the new policy, the government decided to continue the existing structure.
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Existing valid license holders have been allowed to continue operating their shops for the 2026–27 year. For this, they must pay a Renewal Fee (RRET) in addition to the regular annual RET. The government fixed this RRET at 38% of the annual RET applicable to the respective shop in 2025–26.
For instance, a shop with an annual RET of ₹60.5 lakh in 2025–26 will have a renewal fee (RRET) of ₹23 lakh. A shop with an RET of ₹71.5 lakh will need to pay an RRET of around ₹27.2 lakh, and a shop with an RET of ₹93.5 lakh will have to pay approximately ₹35.5 lakh.
In the reserved category, where the RET has been ₹30.3 lakh, ₹35.8 lakh, and ₹46.8 lakh, licensees must pay an additional renewal fee of approximately ₹11.5 lakh, ₹13.6 lakh, and ₹17.8 lakh respectively.
This renewal RET must be paid as a single lump-sum payment. Along with the renewal application, details of payment for the annual RET and the permit room must also be submitted.
Shops not renewed by the current licensees under the present policy will be allotted to new applicants through a lottery/draw of lots system.
To conduct a lottery for a new shop, at least four valid applications must be received. If fewer than four applications are received, the selection process will not be conducted; if needed, the Excise Commissioner may extend the application deadline.
If four applications are still not received after the extension, the selection will be dropped, and applicant fees may be refunded as per the rules.
The renewal RET does not apply to new applicants who obtain a shop through the lottery. Besides the Retail Excise Tax and Permit Room RET, a non-refundable application fee of ₹3 lakh must be paid, along with an application processing fee.
The government specified options to apply via online, hybrid, and offline modes.
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The government categorised the annual Retail Excise Tax for liquor shops for the year 2026–27 into three slabs based on the 2011 Census:
The annual RET levied on a shop increases as the population of the residential locality rises. Lower RET continues for reserved category shops. A special RET has been imposed on shops located near urban areas, including rural shops near Municipal Corporation and Municipality boundaries.
Shops located in mandals, Nagar Panchayats, or Municipalities within a 5 km radius of a Municipal Corporation boundary will be charged the RET rate applicable to Corporation shops.
Similarly, shops in mandal or Nagar Panchayat areas within a 2 km radius of a Municipality boundary will be charged the Municipal RET rate.
However, the rules state that if the standard RET applicable to that specific area is higher, the higher rate must be applied.
The annual RET can be paid in a single payment or in four equal instalments.
The first instalment must be paid on the day of shop selection or the next banking working day. The second instalment must be paid by December 20, the third by March 20, and the fourth by June 20.
Licensees paying in instalments must submit a bank guarantee for the prescribed amount at the time of the first instalment.
Payment delays will attract an additional penalty of 10% for up to 10 days, 20% for 11 to 20 days, and 30% for 21 to 30 days, along with penal interest as per rules.
Both newly licensed and renewed shop owners must provide a written undertaking agreeing to adhere to the rules. These include selling liquor only at government-fixed prices, not selling untaxed liquor, refraining from selling fake or spurious liquor, and avoiding brand mixing or dilution.
A provision has been introduced to levy a penalty of ₹10 lakh for a first-time violation.
If the same violation occurs a second time, proceedings may move toward license cancellation without the option of compounding. However, the licensee must be given a seven-day notice and an opportunity to present their case before cancellation.
The MRP of all brands sold must be displayed in every shop. In addition to cash, digital payments must also be accepted at the customer’s choice. A QR code for complaints and feedback, contact numbers/emails of officials, and the toll-free helpline 14405 must be displayed.
The government has placed a special ban on opening liquor shops along certain key routes within the Tirupati Municipal Corporation limits. Shops will not be permitted on the route from Tirupati Railway Station to Alipiri via the RTC Bus Stand, Leela Mahal Circle, Nandi Circle, Vishnu Nivasam, and Srinivasam.
Shops are also prohibited on the route covering Leela Mahal, Nandi Circle, Alipiri, SVRR, and SVIMS.
If any shop remains unallotted even after the lottery process concludes, the Excise Commissioner may notify it again.
Depending on necessity, the Commissioner/Director has also been granted the power to shift such shops to other parts of the state as part of rationalisation.
(Edited by Sumavarsha)
