Mumbai: The anti evasion wing of Mumbai Central GST has busted a “major illegal gold movement channel,” the GST Mumbai Central Commissionerate tweeted Friday evening. The wing seized gold jewellery and precious stones valued at Rs 25 crore. Seventy Jewellers are said to be involved in the racket. It deals with IGST fraud, a source told ET.
Gold attracts a 3% GST and a 12.5% import duty. Some unscrupulous traders deal in smuggled gold, which also helps them to see the wares without the mandatory 3% GST on jewellery and gold coins.
“The customs and GST officials have raised their drive to curb evasion of import duty or of the GST,” said a government official speaking on anonymity.
The extent of 70 jewellers involved in the reported “evasion” is a serious issue, said Anantha Padmanabhan, chairman, All India Gem & Jewellery Domestic Council.
India imports 700-800 tonnes of gold on average each year. After the UPA government raised the duty in stages from 2% to 10% in 2013 to check a ballooning current account deficit, smuggling reared its head. In the Budget for FY20, the duty was upped to 12.5%. Together with GST the total tax is 15.5%.
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