DGGI raids liquor producers, recovers GST liability of Rs 3.10 crore

Nagpur: The Directorate General of Goods and Services Tax Intelligence’s (DGGI) zonal unit here launched a major crackdown on two big players of the liquor sector in Maharashtra regarding massive evasion of GST.
The unit working under the Central Board of Indirect Taxes and Customs conducted raids on Pernod Ricard India in Nashik and Radico NV Distilleries Maharashtra in Aurangabad in last week of June and first week of July.
As per DGGI’s press release, the misclassification was accepted by the taxpayers and the entire GST liability of Rs 3.10 crore was paid by them after the raids.
“While alcoholic liquor for human consumption is not liable to GST, a number of products which emerge during the manufacturing process are liable for it. 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%. However, both the manufacturers were supplying this product at nil rate of GST by misclassifying,” the DGGI mentioned.
All Covid-19 related precautions were taken during the searches by the officers, the DGGI said.