The Government of Andhra Pradesh on June 17, 2026, issued amendments to the AP Excise (Grant of license of selling by Bar and conditions of license) Rules 2025.
The following amendments have been stated:
• The following new clause 'cc' shall be added after clause 'c' in sub-rule (1) of Rule 3:
Beach Shack: Beach Shack means a small semi-permanent structure located along the beachfront where food is served, constructed using temporary and eco-friendly materials (excluding reinforced concrete construction), situated on a land parcel allotted by Andhra Pradesh Tourism Development Corporation (APTDC)/DTC or any other competent authority or on private beach land and licensed under AP Excise (Grant of Licence of selling by Bar and Conditions of licence) Rules 2025 for sale of permitted alcoholic beverages in the Beach Shacks as per policy.
• The following new Rule '35-A (Beach Shack)' shall be added after Rule 35.
Rule 35-A. Beach Shack:-
(1) Number of Beach Shacks and Establishment:-
The Government shall fix (2) Beach Shack Bar licences each at Suryalanka and Visakhapatnam initially on a pilot basis, having due regard to the requirement, public order, safety and other factors as it thinks fit.
(2) Form of Licence: -
Form-2B (BS): A licence in Form-2B (BS) may be granted to an entity holding a Beach Shack on a private beach land parcel owned by it or on a beach land parcel allotted by APTDC/DTC or any other competent authority for sale of permitted alcoholic beverages namely Beer, Wine and RTD (Ready to Drink) in glasses, pegs or in sealed bottles for consumption within the shack, including the deck beds and umbrellas within picketed fencing or equivalent demarcation within the licensed premises of the Beach Shack.
(3) Eligibility:-
The following entities shall be eligible to apply for a Beach Shack Bar Licence in Form-2B (BS):
i. Star Hotels, Tourism Resorts and Tourism department registered establishments located along the Beach, having private beach land parcel of their own or beach land parcel allotted by APTDC/DTC or any other competent authority for Beach Shack purpose; and
ii. Recommended by APTDC for grant of prior clearance for the Bar Licence for beach shack; and
iii. Who are of the age of 21 years and above and not disqualified under these Rules.
(4) Prior Clearance:-
i. A person/entity intending to establish Bar in a Beach Shack, on the recommendation of the APTDC, may submit an application in Form-1A (BS) Lo the Commissioner of Prohibition and Excise, enclosing a challan for Rs.2,00,000 (Rupees Two Lakhs only) paid towards non-refundable Prior Clearance Application Fee.
ii. The Commissioner of Prohibition & Excise after making such enquiry as he deems fit duly considering the requirements of public safety and maintenance of public order, subject to the recommendations of APTDC and such directions of the Government as may be issued from time to time in this regard, shall grant prior clearance in Form-24 (BS) to such of the applicant.
Provided that the grant of prior clearance shall not confer any right on the applicant for grant of licence. The holder of prior clearance shall not claim any compensation or loss in case the licence is not granted.
(5) Grant of Licence:-
i. The holder of prior clearance granted under Rule 35-A (4), may apply in Form-1B (BS) by enclosing a challan for Rs. 10,000 (Rupees Ten Thousand only) for grant of licence in Form-2B (BS) to the District Prohibition and Excise Officer concerned.
ii. The District Prohibition and Excise officer, after making such enquiry as he may think necessary, to ascertain the bona fides of the applicant and verifying the particulars furnished in the application shall examine the suitability of the premises for granting Bar licence for the Beach Shack and forward the same to the Deputy Commissioner of Prohibition and Excise concerned along with his report.
iii. The Deputy Commissioner, after causing such enquiry as he may deem fil, shall grant the privilege of bar and the District Prohibition and Excise Officer shall issue the Licence in the prescribed Form.
6) Restrictions on the grant of licence:-
A licence in Form-2B (BS) shall not be granted unless:
a) the premises has a minimum plinth area of 1,000 Sq. feet and a maximum of 1,500 Sq. fect;
b) the applicant obtains Coastal Regulation Zone (CRZ) clearance from the competent authority;
c) the applicant erects the beach shack structure within the prescribed timeframe using approved materials;
d) the applicant obtains all mandatory statutory approvals from Tourism Department, Government of Andhra Pradesh, Trade Licence, FSSAI Licence, Fire Safely Certificate, and any other approvals prescribed under applicable law;
e) the premises has separate toilets and wash facilities for ladies and gents;
f) the premises has a kitchen licensed by the local authority with full meal service capability;
Provided that complete meal service shall be operational within 30 days of grant of Bar licence.
g) the premises has adequate parking arrangements;
h) the premises has picket fencing of equivalent demarcation around the licensed area;
Provided that consumption of liquor shall be permitted in the deck beds and umbrellas within the licensed area.
ii. The applicant shall provide the following before applying for grant of Bar Licence:
a) adequate first-ald facilities on premises;
b) adequate lighting within and around the shack premises;
c) waste management and sanitation facility as per Local Body requirements.
d) Fire fighting equipments as per fire safety norms.
iii. No loudspeakers or amplified music beyond permissible decibel levels shall be permitted at the beach shack premises.
(7) Hours of business: -
The Licensee shall serve alcoholic beverages from 10.00 AM to 8.00 PM only, subject to such directions may issuc by the Government from time to time. Food service may continue beyond the alcohol service hours, subject to approvals from the Tourism Department or the local body or any other competent authority.
(8) Retail Excise Tax:-
The annual Retail Excise Tax for the Bar licence for Beach Shack shall be Rs. 7,50,000 (Rupees Seven Lakhs Fifty Thousand only) subject to 10% increase year on year and shall be paid in one lump sum.
Provided that if a Bar licence is granted after the commencement of the licence period and up to 30th September, the annual Retail Excise Tax shall be reduced so as to be proportionate to the unexpired period, part of a month being treated as full month.
(9) Period of licence:-
Every licence shall be valid for three years commencing from 1* September of the first year ending with 31st August of the third year, subject to payment of annual Retail Excise Tax as prescribed.
Provided that the licence issued on or after 1st September shall be valid up to 31st August of the third year.
(10) Permitted Alcoholic Beverages: - Only low-alcoholic beverages such as Beer (including mild beer & craft beer), Wine (all varieties including sparkling wine) and Ready-to-Drink (RTD) beverages shall be permitted for sale. No sale of Indian Made Foreign Liquor (IMFL), or Foreign Liquor other than the above shall be permitted.
(11) Application of other Rules:-
Same as otherwise expressly provided herein, all Rules and conditions governing Bar licences shall apply mutatis mutandis.
[Notification No. G.O.Ms.No.363, Revenue (Excise.II)]
