Thiruvananthapuram: State GST department’s intelligence and enforcement wing has detected tax evasion worth Rs 70 crore in jewellery business. Of this, Rs 2.87 crore has been recovered for govt in the form of tax and penalties.The evasion of tax was found in a statewide inspection conducted as part of Operation Aurum in the intervening night of Thursday and Friday. Inspections were held at businesses engaged in purchasing old gold ornaments, refining them and converting them into bars and new jewellery for trade.Simultaneous inspections were conducted at 79 locations, including gold shops, branches and residences linked to 37 taxpayers.Officials believe that further tax evasion may come to light based on transaction details collected from the establishments for previous years.The GST intelligence wing had been preparing for this operation over the past several months, said a press release.When the public buys gold from registered dealers, the amount paid includes GST in addition to the price of gold. Every citizen has a responsibility to ask for a bill from traders to ensure that the tax collected is remitted to govt, the state GST department said.Tax revenue is a major source of funds for the country’s development projects and public welfare activities. State GST commissionerate stated that investigations and strict action against such tax-evading establishments will continue vigorously.
