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DGGI, Nagpur Zonal Unit takes action against two big players of liquor sector in Maharashtra

by TLN Team July 8, 2020July 8, 2020
written by TLN Team July 8, 2020July 8, 2020
DGGI, Nagpur Zonal Unit takes action against two big players of liquor sector in Maharashtra

On the basis of specific intelligence developed and shared by the DGGI, Hqrs., there was a major crackdown by the officers of DGGI, Nagpur Zonal Unit during the last week of June/first week of July 2020 on two big players of the Liquor sector in Maharashtra regarding massive evasion of GST.

While alcoholic liquor for human consumption is not liable to GST, a number of products which emerge during the manufacturing process of alcoholic liquor are liable to GST.

One of these products is Wet Distillers Grains with Soluble (WDGS or DGS) supplied for manufacture of Animal Feed, which is liable to GST @ 5% under Heading 2303. However, the two Liquor manufacturers were supplying this product at Nil rate of GST by misclassifying it under Heading 2309.

Searches were accordingly conducted on the premises of M/s Pernod Ricard India Pvt. Ltd., Nashik and M/s Radico NV Distilleries Maharashtra Ltd., Aurangabad by the officers of DGGI, Nagpur Zonal Unit during which the misclassification was accepted by the Taxpayers and the entire GST liability of Rs. 3.10 Crore has been paid by these Taxpayers.

All COVID 19 related precautions were taken during the searches by the DGGI officers.

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