Raymond, Godrej FMCG offer under DGGI’s scanner

GST body probes Godrej’s 2,825 crore acquisition of Raymond’s durable goods company Synopsis The DGGI is likewise comprehended to have actually looked for a description from GCPL on the matter. The sources mentioned included that DGGI’s Mumbai system likewise performed an evaluation on properties connected to Raymond as part of its examination. Area 67 of the CGST empowers an authorities to carry out an examination if he has factor to think that an individual worried has actually reduced info to avert tax.AgenciesRepresentative ImageMumbai: The Directorate General of GST Intelligence (DGGI) is penetrating a current handle which Raymond offered its durable goods company to a Godrej system, sources knowledgeable about the matter informed ET. The sources mentioned stated the GST authorities have actually asked Raymond Consumer Care ltd (RCCL) to discuss why GST must not be imposed on the deal quantity. GCPL obtained the FMCG service, in addition to the Park Avenue, KS, KamaSutra and Premium hallmarks, through a depression sale in April 2023. In a filing with the exchanges, Godrej Consumer Products Ltd, the acquirer, stated it had actually paid 2,825 crore. The DGGI is likewise comprehended to have actually looked for a description from GCPL on the matter. The sources mentioned included that DGGI’s Mumbai system likewise carried out an assessment on facilities connected to Raymond as part of its examination. Area 67 of the CGST empowers an authorities to carry out an examination if he has factor to think that an individual worried has actually reduced info to avert tax. In an e-mail reply to a question sent out by ET, a Raymond representative stated, “… please note that it was an assessment by DGGI in regard of the defined deal and not a search. Even more, we have actually offered appropriate description together with the documentary proof to the result that the sale of company to GCPL on going issue basis, does not draw in GST. Provided the cont
Find out more