Goa Excise Management System (GEMS 2.0)

State Excise is the second largest revenue generation department in Goa. There are 105 Liquor manufacturing units, 240 Wholesalers, 24 Medicinal and Toilet preparation companies, 4 Industrial units, 4 Military canteens, 2173 Re- tailers and 8087 Bars in Goa. Goa Excise Department is mainly concerned with production of liquor, monitoring and controlling the liquor movements across in Goa. To accomplish this objective, the GEMS is developed and implemented for seamless online communication among all excise officials across the state, all licensees, administrative departments & other stakeholders through the work-flow based system.

GEMS is implemented Blockchain Technology in its services, as a potential means to better serve and improve processes for public administrative func- tions. The ability to record transactions on distributed ledgers and supply chain offers new approaches for stakeholders to improve transparency, prevent fraud, and establish trust.

Objectives of Blockchain Technology (BCT) in GEMS :

To streamline liquor movement across the state and outside the state

To track the products of Liquor Manufacturing Unit

To assure the quality of the raw-materials & products

To prevent the transport of illicit liquor

To avoid breach of duty

How Does the Blockchain Work in GEMS?

The Blockchain technology will create synchronized work-flow of liquor manufacturing units and each stage of the process will be recorded in the Blockchain Network. GEMS mainly fo- cuses on three areas,

1. Supply chain Management of Liquor Transaction
2. Distributed Ledger
3. Blockchain Benefits for B2B & B2C

Supply chain Management:

1. Liquor manufactures import the raw materials (spirit/Alcohol) using the Blockchain certified permits. Details of the raw materials & quantity are available on the permit

2. Spirit/Alcohol/Packed Liquor Transaction will capture in the Blockchain through different levels

a. Transfer of raw materials from truck to warehouse
b. Storing the data of applying the requisition of raw materials while blending starts
c. Bottling takes place based on the produced blend
d. Warehouse entry of Liquor Cartons
e. Exiting of packed liquor from the warehouse based on the Blockchain certified permits

3. All manufacturing warehouse is integrated with the Blockchain Network

Flow of Blockchain in supply chain:
Distributed Ledger:

Traditionally, transactions of stakeholders are offered through a trusted third-party in Liquor Industry. The main disadvantage of having a third-party is that trust is required in this party not to misuse its power and to faithfully provide its services. The main risk of having a third party trust in Liquor Industry is that an issuer can gain to control over the stakeholders, which enables the stakeholders compromise the issuer’s inefficient services. The current business ledgers being used today are inadequate from multiple points of view. They are costly and subject to misuse and tampering, and lack of transparency as well as susceptibility to corruption and fraud. These uncertainties lead to disputes between stakeholders. As a consequence, having to resolve disputes, the reverse transactions or refund for transaction maybe expensive. Furthermore, the current system is also delayed while reconciling the different stake-holders ledger records and which leads to making wrong business decision and negligence. These risks and dangers perhaps contribute to the botched business opportunities.

While using Blockchain technology in distributed ledger system, each record in the distributed ledger has a timestamp and unique cryptographic signature, thus making a permanent record of all stakeholders transactions in Blockchain Network. In addition to that a record on the Blockchain would be initiated and every other stakeholder in the deal will be able to see that information as soon as it is uploaded.

Blockchain Benefits for B2B & B2C:

Manufacturing Unit: Complete manufacturing supply chain is captured in the Blockchain Network.

Consumer: The Consumer can verify directly through the Blockchain without a third-party trust. The Consumer can also ensure the quality of the liquor based on Batch No. and the QR code printed on the label of each bottle directly from the Blockchain Network.

Buyer: The Buyer can verify the permit through the Blockchain Network without a third-party trust.

Note: Proof of Concept (POC) is under progress. Export Permit is integrated with the Blockchain Network, and others are under progress.