Meticulous planning behind Kerala GST's massive gold jewellery raids
Thrissur (Kerala), Oct 25, 2024
Investigation is ongoing, and estimating the precise amount of tax evasion will be only possible after completing the verification of the seized gold and other documents
There was meticulous planning at the top level before conducting the massive raids on gold jewellery manufacturing units by Kerala GST officials in Thrissur district, aimed at uncovering unaccounted gold linked to tax evasion, official sources said on Friday.
The two-day-long massive searches were carried out by around 700 officials from the state's GST department at gold jewellery manufacturing units across the central Kerala district, seizing 104 kg of unaccounted gold after extensive preparations and planning to ensure that there were no loose ends, they said.
The operation was planned and implemented with the full support of state Finance Minister K N Balagopal, an official source told told PTI.
Around 700 officers were summoned to gather at two locations on Wednesday (October 23) and then transported in tourist buses labelled as study tours to various sites in Thrissur.
A senior GST official involved in the operation, named "Torrel del Oro," said, "We opted for tourist buses to maintain secrecy; transporting officers in department vehicles could have risked a leak. If the gold traders caught wind of our operation, it could have jeopardised our mission." The name was adopted from a Spanish term meaning 'Tower of Gold'.
The official added that the investigation is ongoing, and they will be able to estimate the precise amount of tax evasion only after completing the verification of the seized gold and other documents.
Meanwhile, the Kerala Gold and Silver Merchants Association has criticised the raids, claiming that the state GST Department is trying to depict traders in the sector as tax evaders.
"The officials are inflating the figures by highlighting the 104 kg of gold seized, which is minimal compared to the gold trading sector's annual turnover of over Rs lakh crore. Additionally, the raids were conducted with mobile phones and CCTV cameras turned off, disrupting business operations," the association said in a statement.
"Furthermore, these raids targeted firms that are GST registered, while no action has been taken against those involved in gold smuggling who operate without any registration," it added.
[Press Trust of India]
