PANAJI
Days after questioning the Goa government's proposed QR code-based Deposit Refund Scheme (DRS) for liquor bottles, traders have sought legal and regulatory clarifications, warning that businesses cannot risk decades-old operations due to an allegedly ill-prepared implementation process.
The Goa Feni Distillers and Bottlers Association requested DRS Authority, the VAT and Commercial Tax Departments and the Food and Drugs Administration (FDA), for written clarifications before the scheme is enforced against retail licence holders.
Among the principal concerns is the legal basis for collecting a refundable deposit in excess of the maximum retail price. Association Secretary Hansel Vaz said they also seek clear directions on how such deposits should be displayed and billed, besides seeking guidance on the tax treatment of the deposits and their accounting and balance-sheet implications.
“Whether existing licences permit retailers to handle returned and soiled bottles and install Reverse Vending Machines (RVMs), or whether fresh approvals or licence amendments would be required. We would also like to know if no-objection certificates from municipalities, panchayats or housing societies would be mandatory for installing RVMs,” he said.
The association has also called for a defined procedure to deal with damaged or unreadable QR codes and labels, an independent consumer grievance redressal mechanism, government-managed collection and reverse logistics instead of dependence on retail storage, a formal standard operating procedure and training programme for retailers, protection from penal action for failures beyond the retailer's control, and a compensation mechanism if retailers are required to shoulder additional responsibilities.
The concerns come less than two months before the government plans to implement the first phase of the DRS on September 1, covering alcoholic beverage packaging.
Producers, importers and brand owners dealing in liquor products have been directed to register under the scheme by July 31 before placing products in the Goa market from September 1.
The DRS Authority has maintained that the scheme is aimed at improving the recovery of beverage packaging and reducing litter, while defending the mandatory QR code system as essential for secure refunds, traceability and fraud prevention.
It has also stated that more than 100 Reverse Vending Machines have already been installed across Goa and that several hospitality establishments and beverage brands have joined the initiative ahead of the rollout.
“The QR code is not an arbitrary addition to the DRS; it is the foundation that enables secure refunds, traceability and fraud prevention. QR-based traceability is already an established practice in the alcohol industry, with 17 States mandating excise QR codes for alcoholic beverages. The industry has successfully integrated these systems, including on high-speed production lines," DRS Authority chairman Dr Anthony de Sa said.
“Once a producer or brand registers under Goa DRS, the authorised QR printing provider supplies the printed QR stickers. Brands can simply place their order through the Goa DRS portal and have the stickers delivered to any of their manufacturing facilities. Our objective is to make implementation simple, secure and transparent while protecting consumers and the integrity of the refund system.”
