Wine
Wineries and grape businesses in Dindori, Niphad and Vinchur. From our Nashik office we work on State excise, the GST credit split on common inputs, seasonal stock and the accounts.
Last reviewed 1 October 2026
In Nashik district, wineries stand beside the vineyards that supply them. Bottled wine for human consumption is outside GST and taxed under State excise, yet many inputs and other supplies remain within GST. Seasonal stock and grower purchases raise further questions in the same year, as do family entities that hold the land or the brand.
The sections below set out those issues and the way we work on them from Nashik. This page describes types of work and names no clients.
The issues wineries face
Nashik district produces a large share of India's wine, with wineries in Dindori, Niphad and Vinchur, where the wine park stands. Alcoholic liquor for human consumption is outside GST and is taxed under State excise. Most of the tax work at a winery follows from that one fact. The notes below are general and state the law as at 1 October 2026; they are not advice on any particular set of facts.
Outside GST, inside State excise
A winery's sale of alcoholic liquor for human consumption falls outside GST and is subject to Maharashtra State excise. Excise records and permits have to agree with the sales register. GST continues to apply to many inputs and to the other supplies the business makes, so two tax systems run in the same set of books.
Credit on common inputs and services
The CGST Act requires credit on inputs and input services used for both taxable and non-GST supplies to be split. Wineries often claim full credit on bottles, corks, labels, freight and professional fees. When the non-GST share is identified at assessment, the excess credit is reversed with interest, sometimes for several years together. A monthly method for the split gives the return a basis that can be explained to an officer.
Seasonal production and year-end stock
Crushing and bottling follow the grape season. By 31 March a winery usually holds large quantities of bulk and bottled wine, with packaging and chemicals beside them. If the valuation in the books differs from the excise stock records, the difference has to be explained to the excise department, the tax officer and the bank that funded the season.
Other supplies beside bottled wine
Tasting-room sales, merchandise, contract bottling, grape sales and exports each carry their own GST or excise treatment. Where all of them pass through one cash account without distinction, the reconciliation later takes considerable time and a supply may be taxed under the wrong system.
Exports and interstate movement
Wine or related products moved out of Maharashtra or out of India need permit, transport and tax documents that match one another. Export refund questions on taxable supplies rest on the same document chain that other exporters keep. See the exporters page.
How we work with wineries
Our work usually starts with the excise and stock registers. After that, the split of GST credit between taxable and non-GST supplies is examined.
GST credit split and returns
Monthly returns are prepared with a written method for common credit. The treatment of incidental taxable supplies is settled at the same time. See GST.
Stock, season and the bank
Inventory is valued so that stock statements agree with the books and with the excise records. See manufacturing finance.
Income tax for the business and owners
We compute year-end tax and review transactions between related entities. Assessments and notices are handled as well. See taxation.
Accounting through crush and bottling
Monthly closing routines are designed to remain workable in the weeks when production is at its peak. See accounting and compliance.
Group map where land and brand are separate
The vineyard, winery and selling entities are mapped, and the charges between them are documented. See family businesses.
Wine in the Nashik district
The wine park at Vinchur lies close to the grape-growing land of Dindori and Niphad, and many businesses there combine growing, processing and trade. Related questions are covered on the food processing and agriculture pages, and export questions on the exporters page.
We visit clients in Nashik district from our office in Nashik. The Nashik page describes how local work is carried out. Where we are a company's statutory auditor, section 144 of the Companies Act, 2013 limits the other services we may provide to that company and to its holding or subsidiary company.
Common questions
Is GST charged on the sale of bottled wine for human consumption?
Alcoholic liquor for human consumption is outside GST and is subject to State excise. Other supplies made by the same business may still attract GST, as may many of its inputs and services. The books have to keep the two systems apart.
Can we take full GST credit on bottles, corks and professional fees?
No. Credit cannot be taken to the extent that it relates to non-GST supplies. Where an input or service is used for both taxable and non-GST supplies, only the taxable share is eligible. A consistent monthly split carries less risk than an annual adjustment made after a notice, when interest has already accrued.
Our vineyard and winery are in different family entities. What should we watch?
Grape transfers, rent, job work and brand charges need a fair price and written terms. The GST valuation rules for related persons may apply even where no payment is made, and the income-tax officer will examine the same trail.
Does the wine park location change the tax treatment?
GST and State excise treatment depends on the licence type, the nature of each supply and the books; location alone does not decide it. A unit in the wine park therefore needs the same excise and GST split as any other winery that makes alcoholic liquor for human consumption.
Other industries: Food processing, Agriculture and agri-business, Exporters, Manufacturing, Family businesses
Where we work: Chartered Accountants in Nashik, Chartered Accountants for businesses across Maharashtra