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Gold January 20, 2020 11:30:02 AM

Ministerial Panel to Probe Tax Evasion on Gold

Paul Ploumis
ScrapMonster Author
The panel held discussions on feasibility of adoption of e-way bills or similar mechanisms to track transportation of gold.

Ministerial Panel to Probe Tax Evasion on Gold

SEATTLE (Scrap Monster):  A ministerial panel comprising of finance ministers from six different Indian states has decided to explore ways to curb evasion of goods and services tax (GST) on gold.

The first meeting of the panel held Saturday looked into the issue of widespread evasion of tax under GST. It decided to take suggestions from various agencies including MMTC and income tax officials to discuss steps to address the concerns. A second meeting of the panel is scheduled to be held in the month of February this year, after presentation of the Union Budget.

ALSO READ: Indian Gold Jewellers Terribly Upset by GST Hike Angsts

The panel held discussions on feasibility of adoption of e-way bills or similar mechanisms to track transportation of gold. Participants at the meeting raised security concerns about e-way bill generation, as even a small stone could be worth lakhs of rupees. Unlike other goods, gold consignments currently do not require e-way bills.

The South Indian state of Kerala, one of the biggest gold consuming states in the country, reported drastic fall in tax collection from gold further to introduction of GST in July 2017. The tax earnings from have declined from INR 600 crores to INR 300 crores in the state, since the rollout of GST. The drastic fall in tax collections is mainly on account of under-reporting of sales by jewellers. The Central and State officials are currently on a drive to counter this.

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