Inspection of gold shops to be increased to prevent tax evasion, not to trouble anyone: Kerala CM

To prevent tax evasion in gold jewellery sales, strict measures like increased inspection of gold shops would be taken, Kerala Chief Minister Pinarayi Vijayan said on Tuesday and allayed concerns of gold merchants that it was a war against them.

To prevent tax evasion in gold jewellery sales, strict measures like increased inspection of gold shops would be taken, Kerala Chief Minister Pinarayi Vijayan said on Tuesday and allayed concerns of gold merchants that it was a ''war'' against them. At a press meet held in the evening, he said the decision was taken as the tax revenue being received from the jewellery sector, which was a major contributor of tax revenue, had reduced. He said the state government does not intend to get into any argument with the gold merchants nor does it intend to trouble anyone. Rather its intention is to ensure proper and timely payment of tax from people in this sector as there are those who are evading tax.

He said the inspections of the various gold selling establishments would reveal the situation there and setting up CCTV cameras was a part of the process and providing the feed to the GST department was also a part of ensuring that no one evades the process of law. He said there is another mode of sale of gold in the state where the precious metal and ornaments made from it are delivered to people's home and in such situation there is no payment of tax. Therefore, the inspections would also help to identify people behind such activities, he said. In a release issued in the morning, it was said that the Chief Minister had taken the decision at a high-level meeting where it was also decided to strengthen the sales tax intelligence in the state.

The Chief Minister also directed that strict inspections should be carried out in areas where tax evasion was likely and where violations are found, action, including cancellation of GST registration of such persons, should be taken against them, the release said. Adequate incentives should be given to officials who do more tax collection, it was decided in the meeting during which Vijayan also inquired about the possibility of making CCTV footage of large gold shops available at the GST office and police station, it said.

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