Indian tax authorities have launched an investigation into global spirits manufacturers Pernod Ricard and Diageo over the classification of bulk Scotch whisky imports, according to reporting by Times of India — Top Stories. The inquiry focuses on whether the companies improperly categorized shipments to take advantage of reduced tariffs.
The regulatory scrutiny follows the implementation of a recent trade agreement between India and the United Kingdom, which came into effect on July 15. The bilateral pact introduced lowered import duties on specific goods, prompting customs and tax officials to review recent import declarations submitted by major liquor conglomerates.
Tax Inspections at Corporate Offices
As part of the ongoing probe, Indian tax inspectors visited the headquarters of Pernod Ricard. Authorities also conducted searches at the offices of Diageo to gather documentation related to their bulk Scotch whisky import classifications.
Investigators are examining whether the companies utilized improper tariff codes to access the reduced tax rates established under the new bilateral terms, potentially depriving the state of applicable customs revenues.
Corporate Response and Compliance
Both Pernod Ricard and Diageo have stated that they are cooperating fully with Indian tax authorities throughout the inquiry. Neither firm has reported any operational disruptions resulting from the visits and searches.
The investigation remains ongoing as authorities continue to review shipping records and import filings made since the trade pact took effect.
