Chandigarh craft beer and microbrewery rules, as of October 2026

The L-10C licence for 2026-27

Chandigarh applies the Punjab Liquor Licence Rules, 1956, as amended for the Union Territory. The Punjab Liquor Licence (Chandigarh 1st Amendment) Rules, 2026, issued on 17 March 2026 and in force from 1 April 2026, set the microbrewery terms for the year (TeamLease RegTech summary of the notification):

• Licence: Form L-10C, for retail sale of beer made in the licensee's own microbrewery.
• Fee: Rs 12 lakh for 2026-27 when granted on its own. The 2024-25 figure was Rs 10 lakh.
• Who applies: a hotel or restaurant holding an L-3, L-4, L-5, L-3A, L-4A or L-5A bar licence can apply 15 days after that licence is granted.
• Quality: a chemist with a biochemistry or alcohol technology degree must certify each day's beer before sale, with a quarterly report from a government-approved lab.

Duty is charged on your fermenters

Excise duty is Rs 30 per bulk litre a year on the annual installed capacity of fermenting tanks, paid in four equal quarterly instalments by the 15th of the first month of each quarter. Late payment carries interest at 1.5% a month. The rate has not moved since at least 2020-21.

Because duty follows installed capacity rather than beer sold, every fermenter you add is taxed whether it is full or not. On the floor that changes how you plan a cellar. A brewpub that buys a spare fermenter to give its lager four weeks of cold conditioning pays duty on that tank all year. Size the cellar to the beer you will actually sell. Ask the excise office how it calculates annual capacity from your tank volumes before the kit arrives.

Kegs to other bars are allowed

This is the big difference from most of the region. The L-10C licensee may sell draught beer in kegs of 25 and 50 litres, against excise permits, to holders of L-12C, L-3, L-4, L-5, L-3A, L-4A and L-5A licences. Each consignment must carry its manufacturing and expiry dates and be checked by the chemist first. The licensee may not pack beer in bottles, cans or pouches. So there are kegs for the trade, but no growlers or cans for drinkers to take home.

For a brewpub that means a second revenue line without a second plant. For a craft brand, it means the realistic route into Chandigarh bars today runs through a local brewpub's surplus capacity.

Pouring craft beer without a brewery

A restaurant, hotel or pizzeria has three ways to put beer on tap:

• L-3, L-4 or L-5: full hotel, restaurant or bar licences.
• L-3A, L-4A or L-5A: beer, wine and ready-to-drink drinks only, Rs 4 lakh for 2026-27.
• L-10A: retail vend of draught beer in a restaurant, Rs 1 lakh for 2026-27.

All of the L-3 to L-5A group may buy kegs straight from an L-10C brewpub. L-10A is not on that list in the notification, so a draught-only restaurant should confirm with the excise office where its kegs may come from. For everything else, bar licensees must buy from the nearest two retail vends (L-2 or L-14A), or the third nearest if both belong to one entity (Chandigarh Administration press note, 5 March 2026).

No corporation, but a fixed supply chain

Chandigarh has no state beverages corporation. Wholesale sits with private L-1 licensees and 97 retail vends are auctioned each year. The 2026-27 policy allows a rise of up to 2% in ex-brewery prices for Indian beer, considered only after the first quarter. It also fixes beer's minimum retail price in bands by ex-brewery price. A cow cess of Rs 0.50 per 650 ml bottle of beer continues. Our beer excise guide explains how these layers stack.

Contract brewing

The 2026-27 notification and press note do not set out contract or tolling arrangements. We found no Chandigarh provision for them. A brand without a plant would brew at a licensed brewery elsewhere and register labels in Chandigarh through the wholesale route. Our contract brewing guide explains the general model. Ask the Excise and Taxation Department before you sign anything.

What to confirm

Chandigarh's fees reset every April. Before you commit, confirm the current L-10C fee, how your fermenter capacity will be measured and which licences your kegs may go to. Work with a licensing adviser. This summary is dated 8 October 2026 and is not legal advice.

Common questions

What is the microbrewery licence fee in Chandigarh?

Rs 12 lakh for 2026-27 for an L-10C licence granted on its own, under the Chandigarh amendment rules issued in March 2026.

How is microbrewery beer taxed in Chandigarh?

At Rs 30 per bulk litre a year on the annual installed capacity of the fermenting tanks, paid quarterly, whether or not the tanks are full.

Can a Chandigarh brewpub sell kegs to other bars?

Yes. It may sell draught beer in 25 and 50 litre kegs, against excise permits, to L-12C, L-3, L-4, L-5, L-3A, L-4A and L-5A licence holders. It may not sell bottles, cans or pouches.

Which licence lets a restaurant serve only draught beer?

L-10A, retail vend of draught beer in a restaurant, at Rs 1 lakh for 2026-27. Confirm with the excise office where an L-10A venue may buy its kegs.