The recent cut in gold import duties from 15 per cent to 6 per cent is anticipated to lead to a notable rise in gold purchases nationwide.
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Thiruvananthapuram: In a crackdown on the illegal gold trade in Kerala, the Kerala Goods and Service Tax department seized around 105 kilograms of unaccounted gold, worth around Rs. 75 crore, from jewellery manufacturing units in Thrissur district.
In a bid to maintain utmost secrecy of the operation code named Torre del Oro (Tower of gold of Spain), even the officials down the line who were involved in the raids were kept unaware of the target till the last minute. They were kept under the impression that they were going on a tour as part of a training programme. Around 75 places were raided.
Thrissur is considered as the gold capital of Kerala as major jewellery groups in Kerala are from Thrissur and the district records almost 70 percent of the state's gold business. Scores of jewellery units are functioning in the district.
State GST department initiated the raid following secret information regarding the massive tax evasion by jewellery manufacturers. Around 700 officials participated in the raids held simultaneously at various locations. GST special commissioner Abraham Renn coordinated the raid.
State GST intelligence deputy commissioner Dinesh Kumar said that at many places the workers tried to run away with the unaccounted gold. The officials chased and nabbed them. Many units were even working at the homes of manufacturers. The raids that started on Wednesday night were over by Thursday morning.
The GST department was carrying out a probe into the illegal jewellery trade over the last several months. Such surprise checks will be initiated in future also.
Kerala government had earlier considered the option of insisting on live video surveillance of jewellery shops by tax officials to check tax evasion. But it had triggered strong resistance from the jewellery shop owners.