Godrej acquires Raymond: The Directorate General of Goods and Services Tax Intelligence (DGGI) is investigating a recent transaction in which Raymond sold its consumer goods business to a unit within the Godrej Group, according to a report by the Economic Times.
The ET report revealed that the GST authorities have issued a notice to Raymond Consumer Care Ltd (RCCL), requesting an explanation as to why Goods and Services Tax (GST) should not be applied to the transaction value.
The acquisition of the fast-moving consumer goods (FMCG) business, which includes popular brands such as Park Avenue, KS, KamaSutra, and Premium, was executed through a slump sale by Godrej Consumer Products Ltd (GCPL) in April 2023, for a reported sum of ₹2,825 crore.
It has also come to light that the DGGI has similarly sought clarification from GCPL regarding this matter. Report further noted that the DGGI's Mumbai unit conducted an inspection at locations associated with Raymond as part of its investigative process. Section 67 of the Central Goods and Services Tax (CGST) empowers tax officials to carry out inspections if there is reason to believe that an individual or entity has concealed information to evade tax.