The Commercial Taxes Department has unearthed large scale evasion of GST by jewellers in Chickpet area in Bengaluru after it found 60 kgs of gold ornaments worth Rs 21 crore without GST documents. It conducted the search operations on 23 jewellers at Ranganatha Mansion and Sakalajee Market in Chickpet area in Bengaluru on Tuesday.
The gold ornaments caught evaded GST of Rs 1.3 crore. “The raids were based on credible information and data analytics available in the backend system with the department developed by the NIC, Karnataka,” Commissioner of Commercial Taxes MS Srikar said.
The raid was based on information that many traders from other states would routinely visit Bengaluru and carry gold ornaments back home without any valid documents and, supply them to local jewellers without GST invoices. The department levied a penalty for the ornaments not covered by documents. In the course of inspection, the officers caught two persons carrying 3.5 kgs of gold jewellery in their bags without documents and collected a penalty.
In December, a similar inspection drive was conducted on silver dealers in Raja Market of Bangalore, the Commissioner said in his press release. The enforcement wing of his department, Srikar said, was keeping a close watch on the inter-state movement of gold, and silver and asked the dealers not to buy any goods if they did not have valid purchase invoices.