Jamshedpur: The state is set to implement new regulations for bars, hotels, and restaurants starting May 1, 2026. The Department of Excise and Prohibition is currently fast-tracking a revised draft that will overhaul existing operational hours.
Under the new rules, the government will abolish the mandatory midnight closing time. Notably, five-star hotels will receive a special exemption, allowing them to serve alcohol until 4:00 AM. Additionally, the department has categorized license fees and operational timings based on the specific geographical locations and categories of different districts.
Deadlock Over Taxes and License Fees
The department initially planned to launch these regulations on April 1, but amendments to retail liquor shop rules caused a slight delay. While the draft was previously released for public and stakeholder feedback, bar and restaurant associations have raised several objections. Their primary concerns include:
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Hefty Security Deposits: Business owners are protesting the high amounts required for security.
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Fee Hikes: Associations have flagged the sharp increase in license fees as a major burden.
Traders Oppose Double Taxation
The most significant point of contention involves the proposed tax structure. Business owners argue that since GST already applies to the bar and liquor business, imposing VAT on top of it constitutes “double taxation.”
Traders warn that this move will not only skyrocket liquor prices but also deliver a severe blow to the state’s tourism industry. The Department of Excise and Prohibition is currently reviewing these objections and will notify the final rules once they have weighed all stakeholder suggestions.
