Applications are invited for allotment of retail liquor shops in Telangana. The image is used for representative purposes only.
| Photo Credit: MOHD ARIF
Telangana government notified allotment of retail liquor shops (A4) shops across the State for the period December 1, 2025 to November 30, 2027.
Application fee hiked by ₹1 lakh
The non-refundable application fee for the A4 outlets has been enhanced from ₹2 lakh to ₹3 lakh during the licence period and the licence will be granted through drawl of lots based on fixed shop excise tax. There is no increase in the number of shops which is fixed at 2,620 as also the licence period which remains at two years as reported in these columns a few days ago.
Of the total outlets, 15% will be allotted to applicants from Goud community, 10% for Scheduled Caste and 5% for Scheduled Tribes. The government made clear that only persons belonging to these communities should apply for allotment of shops notified under these categories.
Date of draw of lots yet to be announced
While the order said applications would be scrutinised and the district collectors would conduct draw of lots for each A4 outlet, it did not mention the dates stating the Excise commissioner would communicate the schedule.
RSET
The Retail Shop Excise Tax (RSET) has been divided into six slabs starting with ₹50 lakh for areas with population up to 5,000; ₹55 lakh for population between 5,000 and 50,000; ₹60 lakh (above 50,000 and up to one lakh); ₹65 lakh (above one lakh up to five lakhs); ₹85 lakh (above five lakh up to 20 lakh) and ₹1.1 crore for areas with population above 20 lakh.
Estimated revenue around ₹1,400 crore
This will mean that the government will net close to ₹1,400 crore – ₹1,310 crore as retail shop excise tax (RSET) taking the base rate at ₹50 lakh per shop and another ₹78.6 crore in the form of non refundable licence fee. This is in addition to special RSET of ₹5 lakh a year for each of the A4 shops.
The actual figures will be much higher as filing of multiple applications for a single shop has been a feature over the past few decades and there are several instances where RSET far exceeds ₹1.1 crore in urban areas during the auctions conducted for granting licences.
Walk-in stores
The notification said the provision for walk-in stores has been continued from the licence period 2023-25. All A4 shops would be permitted to convert their outlets into walk-in store on payment of ₹5 lakh a year for each shop. These stores would be permitted to stock and sell all liquor related accessories like ice buckets, ice tongs, wine corks screws, trays, glasses, goblets and others in the licensed premises.
The government made a provision for collection of shop turnover tax claiming that the levy would be collected when the cumulative value of licensees’ annual purchases during the year exceeds 10 times of annual RSET. “The turnover tax would be 10 per cent inclusive of VAT on purchase thereon,” the notification said.
Interestingly, the government made provision for the Excise department or Telangana Beverages Corporation Limited to establish outlets in the event of any A4 shop remaining undisposed after the completion of allotment process. “The Prohibition and Excise Commissioner is empowered to permit the Prohibition and Excise department/Telangana Beverages Corporation Limited to establish outlets or to re-notify such A4 shop,” the order said.
Published – August 20, 2025 02:01 pm IST
