GIFT City Liquor Permit: Is Alcohol Allowed in Gujarat’s Financial Hub?

Last Updated on: 30th October 2025, 05:30 pm

Is alcohol allowed in GIFT City, Gujarat?

Yes, alcohol is allowed in GIFT City, Gujarat’s financial hub, under a regulated permit system. While Gujarat remains a prohibition state, the Gujarat government introduced a controlled liquor policy in December 2023, specifically for GIFT City, Gandhinagar.
Employees and visitors can legally consume alcohol within designated “wine and dine” zones by obtaining a Liquor Access Permit (LAP). Hospitality venues like hotels and restaurants can also serve alcohol with appropriate F.L. III license. This zone-specific exception aims to align GIFT City with international business hubs and attract global investors. However, alcohol sale & consumption outside permitted areas or without a valid permit remains punishable under Gujarat’s prohibition laws. To digitise liquor access and enhance visitor convenience, the Gujarat government is set to introduce a dedicated mobile application that will digitise the entire liquor permit process from application and document submission to instant approval.

Introduction to Liquor Laws in Gujarat

Gujarat has been a dry state since 1960, enforcing strict prohibition under the Gujarat Prohibition Act, 1949a law deeply rooted in Mahatma Gandhi’s ideology. As one of the only states in India to maintain a complete ban on alcohol, alcohol consumption, sale, and possession in Gujarat has long been illegal without a special permit. Traditionally, liquor permits in Gujarat were granted only to foreign tourists, NRIs, and individuals with medical needs, making alcohol access heavily restricted for the general public.

Despite changing social and economic dynamics, Gujarat’s stance on alcohol remained firm for decades until the recent policy shift in GIFT City, Gandhinagar. GIFT City move represents the first-ever relaxation of the prohibition policy in the state’s history

This landmark development now offers a controlled and regulated liquor permit system, marking a significant departure from the state’s prohibition legacy.

What Changed in GIFT City?

For the first time in Gujarat’s history, alcohol is legally allowed within GIFT City, thanks to a zone-specific relaxation of the state’s prohibition laws. On 30th December 2023, the Gujarat government passed the Gujarat Prohibition (Amendment) Bill, 2023, bringing a controlled liquor policy to Gujarat International Finance Tec-City (GIFT City), Gandhinagar. GIFT City was officially granted an FL-3 liquor license on December 30, 2023, permitting hotels, clubs, and restaurants in the city to serve alcohol to patrons over 21 under a controlled permit system

This news about liquor in GIFT City introduces a Liquor Access Permit (LAP) system for employees and a Temporary Permit system for official visitors. Alongside, restaurants in GIFT City can now serve alcohol legally by obtaining an F.L. III license. This step aligns GIFT City with global financial hubs and aims to enhance corporate hospitality, tourism, and ease of doing business.

If you’re wondering, “Is alcohol allowed in GIFT City?” — Yes, but only within regulated, licensed premises and through a formal permit system.

The relaxation is explicitly aimed at making GIFT City more attractive to international investors and professionals by offering amenities on par with other global financial hubs.

Key Highlights of GIFT City Liquor Permission Reform

Change Implemented	Details
Notification Date	30th December 2023
Law Amendment	Gujarat Prohibition (Amendment) Bill, 2023
Relaxation Area	GIFT City, Gandhinagar
Permit System Introduced	Liquor Access Permit (LAP) for employees and visitors
Permit for Visitors	Temporary Permit (1-day), only with an LAP holder
Licensed Serving Venues	Wine and Dine establishments with F.L. III license
Purpose of the Policy	Align with global financial hubs, support corporate growth

This controlled liberalization ensures that alcohol permits in GIFT City remain regulated, traceable, and compliant, while improving the city’s competitiveness on a global scale.

GIFT City, Gujarat Liquor Permit Types & Eligibility

To consume alcohol legally in GIFT City, Gandhinagar, individuals must obtain a valid liquor permit under the new controlled policy. The GIFT City liquor permit system includes two types of permits designed to regulate alcohol access for both employees and visitors.

These permits ensure that alcohol consumption in GIFT City is restricted to designated wine and dine venues, while complying with Gujarat’s broader prohibition laws.

Types of Liquor Permits in GIFT City

Permit Type	Validity	Eligible Individuals	Fee
Liquor Access Permit (LAP)	2 years	Employees working in GIFT City units	₹1,000 per year
Temporary Permit	1 day	Visitors (must be with a LAP holder)	No fixed fee

For obtaining individual liquor permits in GIFT City it costs ₹1,000 per year and is issued for 2 years (renewable).

Key Conditions & Eligibility Guidelines

• Minimum Age Requirement: 21 years
• Employer Recommendation: Required from the employee’s HR or PRO
• Visitor Permit: Must be endorsed by the host organization and accompanied by a permit-holding employee
• Application Process: All applications are reviewed and approved by the GIFT Facilitation Committee

This permit-based alcohol access in GIFT City ensures responsible consumption, while offering flexibility for corporate guests and employees. 

How to Apply for a Liquor Permit in GIFT City

Wondering how to get a liquor permit in GIFT City? The application process is simple and well-structured for both employees working in GIFT City and official visitors.

The Liquor Access Permit (LAP) is mandatory for consuming alcohol legally within the licensed bars and restaurants in GIFT City. Here’s a step-by-step guide to help you through the process.

For Employees (Liquor Access Permit – LAP)

1. Get HR or PRO recommendation from your organization/unit in GIFT City
2. Fill out the application form and submit it to the GIFT Facilitation Committee
3. Pay the permit fee of ₹1,000 per year
4. Once approved, receive a Liquor Access Permit valid for 2 years

For Visitors (Temporary Permit)

• Must be accompanied by an employee who holds a valid LAP
• A Temporary Permit can be issued on arrival, allowing one-day alcohol access within designated venues in GIFT City

Individuals can refer to the Gujarat State Prohibition Department’s official e-permit portal for up-to-date information on application procedures. 

Link – : eps.gujarat.gov.in 

Licensing Process for Wine and Dine Venues in GIFT City

With the introduction of the GIFT City alcohol policy, only authorized hospitality establishments can legally serve alcohol within this financial hub. Restaurants, bars, hotels, and clubs must obtain an F.L. III license to operate as wine and dine venues in GIFT City. Initially, only 5-star hotels in GIFT City were eligible to serve alcohol, but regulations were later expanded to include 4-star hotels, clubs, and select fine-dining restaurants.

The licensing process ensures strict regulation and compliance under the Gujarat Prohibition Act, even within the newly relaxed zone.

Licensing Details for Hospitality Venues

License Type	Authority	Annual Fee	Security Deposit	License Tenure
F.L. III License	Superintendent of Prohibition and Excise, Gandhinagar	₹1,00,000/year	₹2,00,000	1–5 years

Key Conditions:

• Liquor must be sourced only from licensed vendors, either within Gujarat or from approved out-of-state suppliers
• Carryout or retail sale of alcohol is strictly prohibited
• Personal consumption outside licensed premises is illegal, even for permit holders

Only venues with a valid F.L. III license in GIFT City are allowed to serve alcohol to individuals with a Liquor Access Permit (LAP) or Temporary Permit. This ensures a controlled and traceable alcohol ecosystem, aligned with Gujarat’s broader prohibition framework. Alcohol service was originally limited to in-room service; under the new rules, licensed establishments in GIFT City can serve liquor in restaurants, bars, and specified banquet halls.

Upcoming Digital Liquor Permit System in Gujarat: App for GIFT City Visitors

What is the Current Liquor Permit Process in Gujarat?

Before the rollout of the upcoming app, the process to obtain a liquor permit in Gujarat is manual and time-consuming. Here’s how it currently works:

• Tourists must physically visit designated liquor permit counters, usually located inside hotels.
• Applicants are required to:
  • Fill out paper-based forms.
  • Submit physical copies of valid identity proofs (like Aadhaar card, voter ID, or passport).
  • Wait for manual verification and approval by authorities.
• The process may take several hours or longer depending on location and staffing.
• Gujarat residents with a permanent “health permit” must obtain additional authorization from a GIFT City employee to access alcohol within the GIFT City zone.

This system often acts as a barrier for tourists and business visitors, limiting ease of access and hindering GIFT City’s appeal as an international financial hub.

What is the New Mobile Liquor Permit App in GIFT City?

To modernize liquor access and improve visitor experience, the Gujarat government is launching a dedicated mobile app that will digitize the entire liquor permit application process.

Key Features of the New App:

• 100% Online Process:
  • Tourists can apply from anywhere—no hotel visit required.
  • Available 24/7.
• Instant Permit Approval:
  • Upload government-approved ID proofs (Aadhaar, voter ID, or passport).
  • Pay the permit fee through UPI, debit/credit card, or net banking.
  • Receive the digital liquor permit directly on your smartphone, often within minutes.
• Multi-Language Support:
  • The app will be accessible in English, Hindi, and Gujarati, catering to both domestic and international users.
• Elimination of GIFT City-Specific Restrictions:
  • Gujarat residents with health permits will no longer need special authorization from GIFT City officials.
  • The system will automatically validate access, streamlining consumption for professionals and locals alike.

App Launch Timeline and Availability

Feature	Status (as of Oct 29, 2025)
Trial Phase	Completed
Public Launch	Scheduled “within a few weeks”
Languages Supported	English, Hindi, Gujarati
Target Users	Tourists, Professionals, Gujarat Residents
Areas Covered	All legal liquor zones including GIFT City

Why This App Matters for GIFT City

GIFT City, India’s first International Financial Services Centre (IFSC), is positioning itself as a global business destination. Seamless access to regulated amenities like alcohol compliant with state laws is essential to:

• Improve the visitor experience for foreign investors, professionals, and conference delegates.
• Support hospitality businesses within GIFT City by reducing procedural bottlenecks.
• Align with international standards where digital, self-service regulatory tools are expected.

Alcohol Price in GIFT City vs Other Regions

If you’re wondering “How expensive is alcohol in GIFT City?”—the answer is: significantly higher than in nearby regions like Daman or Silvassa. Due to Gujarat’s prohibition legacy and controlled licensing, the GIFT City alcohol price is steep compared to areas with more liberal liquor laws.

Alcohol Price Comparison Table:

Location	Average Alcohol Price	Why the Price Differs
GIFT City	High	Premium state taxes, limited supply, high license fees, controlled and regulated approach adopted by Gujarat’s government contributes to the high pricing.
Daman/Silvassa	Low	Liberal liquor policies, open retail availability, more vendors

In GIFT City Gandhinagar, alcohol is served only in licensed wine and dine venues, and the supply chain is tightly regulated. The cost of obtaining an F.L. III license, combined with high excise duties, leads to premium pricing for alcoholic beverages.

In contrast, Daman and Silvassa, known for their low alcohol prices, operate under liberal liquor policies with competitive pricing due to open retail markets and higher vendor availability.

So, while alcohol in GIFT City offers convenience for corporate professionals and visitors, it does come at a higher cost — one of the biggest deterrents to mass adoption of liquor permits in GIFT City.

Rules, Restrictions & Penalties in GIFT City

Although alcohol is now permitted in GIFT City, it is strictly regulated under the controlled liquor policy. To ensure compliance with Gujarat’s overarching prohibition laws, the state has implemented several rules and restrictions for both individuals and licensed venues. The GIFT City permit only allows on-premises consumption at licensed hotels, restaurants, and clubs and selling sealed liquor bottles for offsite consumption remains prohibited.

If you’re searching “What are the rules for alcohol in GIFT City Gujarat?” — here’s everything you need to know.

Key Alcohol Rules in GIFT City

• Alcohol is allowed only inside designated ‘wine and dine’ venues with a valid F.L. III license
• Liquor can be served only to individuals holding a valid Liquor Access Permit (LAP) or a Temporary Permit
• Record-keeping and CCTV surveillance are mandatory in all licensed establishments
• Daily stock logs and monthly reporting must be maintained and submitted for inspection
• Personal consumption, carryout, or retail liquor sales are strictly prohibited outside licensed zones
• Unconsumed liquor must be destroyed immediately after service hours. Operating hours for serving alcohol have been extended to match international standards.

Penalties for Violations

Violating any of the rules can lead to strict punishment for drinking alcohol in Gujarat under the Gujarat Prohibition Act, 1949, specifically:

• Section 54 – Punishment for illegal possession, consumption, or sale
• Section 56 – Action against non-compliant licensed venues

Authorities, including the Superintendent of Prohibition and Excise,conduct regular inspections, and non-compliant establishments risk losing their licenses in addition to fines and legal action and regularly monitor compliance to ensure that GIFT City liquor permission is used strictly as intended.

Bars and Wine Shops in GIFT City

With the introduction of the GIFT City liquor permit system, select premium hotels have emerged as the first licensed venues to serve alcohol legally in GIFT City, Gandhinagar. These establishments operate under the F.L. III license, allowing them to serve alcohol exclusively to Liquor Access Permit (LAP) and Temporary Permit holders.

If you’re searching “Bar in GIFT City” or “Where to drink in GIFT City Gujarat”, here are the currently operational venues:

Licensed Bars in GIFT City:

• Gift City Club – A premium business club in GIFT City offering licensed bar services to eligible permit holders.
• Grand Mercure Hotel – Another premier hospitality brand now serving alcohol under the regulated framework.

Are there Wine Shops in GIFT City?

No. Retail wine shops in GIFT City are not permitted. Alcohol is available only through dine-in service at licensed venues. Takeaway, carryout, or personal liquor stockpiling is strictly prohibited, even for permit holders.

This ensures that alcohol in GIFT City is consumed responsibly, in alignment with Gujarat’s prohibition law structure while maintaining international hospitality standards.

So, if you’re wondering “Is there a wine shop in GIFT City Gandhinagar?” or “Where can I get alcohol in GIFT City?”—the answer is: only at licensed hotels and restaurants with F.L. III licenses.

Economic Impact of the Liquor Permit Policy

The introduction of liquor permits within GIFT City is expected to drive significant economic benefits across multiple sectors. One of the most direct outcomes is the increase in government revenue through the issuance of FL-3 licenses to hotels, clubs, and fine-dining establishments. These licenses come with substantial annual fees and security deposits, creating a new and consistent revenue stream for the state.

Beyond licensing, the policy shift has ignited momentum in the real estate and hospitality industries. In the months following the announcement, commercial rental rates in GIFT City reportedly climbed by around 7%, while residential property prices rose between 5–20%. This surge reflects heightened interest from both developers and tenants who view the area as increasingly attractive for upscale business operations and lifestyle amenities.

Availability of liquor in business lounges and clubs is expected to facilitate global-standard corporate networking events and executive meetings (even special experiences like whiskey tastings and premium cocktail evenings).

The hospitality and retail sectors are also poised to benefit from increased footfall. As more professionals, investors, and tourists engage with the ecosystem, luxury hotels, restaurants, and entertainment venues are expected to expand bringing with them new employment opportunities in service, operations, and management roles. This policy not only positions GIFT City to better compete with global financial hubs but also stimulates local economic growth and job creation in a region previously constrained by prohibition.

Public Sentiment and Industry Impact

The introduction of the GIFT City liquor permit policy has sparked mixed reactions across Gujarat. While many view it as a progressive step toward economic modernization, others see it as a departure from the state’s deep-rooted prohibition principles. GIFT City’s liquor policy announcement led to a real-estate surge: commercial rents in the city jumped ~7%, and residential property prices rose 5–20% after the policy change.

Positive Outlook on GIFT City Alcohol Policy:

• Corporates and multinational companies have welcomed the reform, considering it a move toward a world-class business ecosystem.
• The availability of alcohol in licensed venues makes it easier to host international delegates, conferences, and corporate events.
• The new policy enhances GIFT City’s global appeal, aligning it with financial hubs like Singapore and Dubai.
• The advent of luxury nightlife and alcohol inclusive tourist packages in GIFT City brings an unprecedented development in Gujarat.

Concerns and Challenges:

• A PIL was filed in Gujarat High Court (Feb 2024) against the policy questioning the GIFT City liquor permit decision, and conservative groups have shown resistance.
• Some social and religious groups oppose the relaxation, citing moral and cultural concerns.
• Low public awareness about the permit system and complex application procedures have limited adoption.
• Despite initial interest, only about 700 Liquor Access Permits were issued in the early phase, reflecting slow uptake, as of December 2024.

The policy has initiated important conversations around alcohol in GIFT City, balancing Gujarat’s prohibition legacy with the needs of a modern global financial hub.

Conclusion: A Policy Balancing Modernity and Tradition

The GIFT City liquor policy marks a significant shift in Gujarat’s approach—striking a delicate balance between modern economic aspirations and traditional prohibition values. By introducing a regulated liquor permit system with strict controls, the state has created a framework that supports global business hospitality standards without compromising its legal and cultural ethos. This reform not only enhances GIFT City’s global competitiveness but also showcases Gujarat’s readiness to adapt and evolve in a controlled, responsible manner, making it a compelling destination for corporates, investors, and international delegates alike.