Raymond, Godrej FMCG deal under DGGI's scanner

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Mumbai: The Directorate General of GST Intelligence (DGGI) is probing a recent deal in which Raymond sold its consumer goods business to a Godrej unit, sources aware of the matter told ET..

GCPL acquired the FMCG business, along with the Park Avenue, KS, KamaSutra and Premium trademarks, through a slump sale in April 2023..

The sources cited added that DGGI's Mumbai unit also conducted an inspection on premises linked to Raymond as part of its investigation..

Section 67 of the CGST empowers an official to conduct an inspection if he has reason to believe that a person concerned has suppressed information to evade tax...

Given the contours of the deal and basis the independent tax expert opinion sought by both the parties, the said transaction does not attract any GST as it was a slump sale of the business on going concern basis.".

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