Wine industry gets Rs 13 crore VAT returns

Rs. 19 crores still pending with govt
Wine industry gets Rs 13 crore VAT returns

NASHIK: In order to promote the wine industry, 16 per cent refund is given by the State Government’s Department of Industry on the 20 percent VAT the industry pays. However, over the years this returns are still pending with the government. A fund of Rs.13.5 crore has been made available for the year 2021-22.

This includes ten wineries in Nashik out of thirteen in the state. Despite proposing a refund of Rs. 32.84 crore this year, the finance department has sanctioned only Rs. 13.50 crore. The wine producers have demanded an early release of Rs. 19.34 crore from the government.

The state government has announced the Grape Processing Industry Policy 2001 to encourage the farmers in the state to cultivate grapes and to encourage the wine industry. Accordingly, the government has started a scheme from August 31, 2008 to provide subsidy to wine industry in the form of incentives for payment of 20 per cent value added tax on sale of wine produced in the state.

Under the scheme, the industry department had provided Rs. 32.84 crores to the state finance department for settlement of claims pending in the financial year 2019-20 for distribution. However, out of this, the department has provided funds of Rs. 13.50 crores for the year 2021-22. This amount will soon be received by the wineries.

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