Exploring the possibility of making CCTV footage in big jewelery shops available in GST office and police stations
Chief Minister Pinarayi Vijayan has said that the government will take stringent measures, including thorough inspection of jewelery shops, to check tax evasion in the sale of gold jewellery.
Mr Vijayan announced the decision at a high-level meeting held in Thiruvananthapuram on Tuesday to discuss the issue, an official press release said. He said in the meeting that sales tax intelligence would be strengthened in the state.
The Chief Minister ordered the officers to conduct strict inspection of those places where tax evasion is possible. He directed that action be taken against those involved in tax evasion including cancellation of Goods and Services Tax (GST) registration. He also said that officers who collect more taxes should be given adequate incentives.
In the meeting, Mr. Vijayan also discussed the possibility of making available CCTV footage of large jewelery shops in the GST office and police stations.
He said that there is a trend of delivering gold directly to homes for weddings and other social functions. Such practices deprived the exchequer of its proper tax revenue. Therefore, he had asked sales tax intelligence to identify tax evaders for possible prosecution.
Mr Vijayan said that most of the gold traders have welcomed the move. They didn’t see it as harassment. He said only tax evaders need to be worried.
The meeting was attended by Finance Minister KN Balagopal, Chief Secretary VP Joy, Secretary Tax Department Sharmila Mary Joseph and State GST Commissioner Ratan Kelkhar.
merchants decided
The All Kerala Gold and Silver Merchants’ Association (AKGSMA) has reacted sharply to the Chief Minister’s statement that it was attacking the integrity of jewelery shops in the state.
AKGSMA state general secretary K. Surendran said the state government was relying heavily on the reports of officials on the dent in tax collection. “Revenue collection would have come down with GST replacing taxes like Value Added Tax [VAT] two years ago. This does not mean that traders of gold and silver are not paying tax.
At present, he said that the GST of 3% was equally divided between the Integrated Goods and Services Tax (IGST) and the State Goods and Services Tax (SGST). However, the VAT in the state was 5%. “Now we are paying tax for gold imported by agencies in Maharashtra, Karnataka and Tamil Nadu. The entire bullion is coming from other states,” Mr Surendran said.
He said the government’s decision to ask jewelery owners to link the CCTV cameras of their showrooms with police stations and GST offices is a violation of the right to privacy.
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