GoM exploring ways to curb evasion of GST on gold
New Delhi, Jan 20 (KNN) Group of Ministers (GoM) are exploring ways to curb evasion of goods and services tax (GST) on yellow metal gold.
The measures would include mandating electronic permits for transportation of the precious metal.
Reportedly, a ministerial panel led by Kerala finance minister which has five other members including Bihar deputy chief minister Sushil Kumar Modi, met in New Delhi on Saturday where it was decided to take suggestions from income tax officials and various agencies including companies that import gold.
Ironically, Kerala before GST it earned Rs 600 crore from gold which has been reduced to Rs 300 crore post the GST rollout. Unlike consignments of other goods, the precious metal, at present, does not require e-way bills. The panel is examining if e-way bills or any method to track transportation of the yellow metal could be adopted.
Central and state officials are now on a drive against under-reporting of sales and tax evasion using data collected from various sources.
Bihar’s Deputy Chief Minister Sushil Modi also led GoM on IGST settlement on Saturday. Delhi and Puducherry had raised concern around IGST settlement because it was given as per devolution formula. However, given the Union Territories are not covered under finance commission, they didn’t get the IGST share.
The GST Council will decide on these issues based on recommendations of the ministerial panels.
The Council is expected to hold its next meeting after the Union Budget to be presented on 1 February. The Council would focus on fixing the loopholes in GST and increase revenue collections.