What Did Kerala's Thrissur Jewellery Raids Reveal About Rs 100 Crore Sales Suppression?
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Synopsis
The recent raids in Thrissur by the Kerala State GST Department have exposed staggering sales suppression in the jewellery sector. With the seizure of 36 kg of gold and over Rs 100 crore at stake, this operation, dubbed ‘Arkenstone,’ raises questions about compliance and enforcement in the industry.
Key Takeaways
- Operation 'Arkenstone' reveals significant sales suppression in the jewellery sector.
- 36 kg of unaccounted gold seized in Thrissur.
- Over Rs 2 crore recovered in taxes and penalties.
- Nearly 200 officers conducted raids at 42 locations.
- Ongoing efforts signal a commitment to curb tax evasion.
Thrissur, Aug 29 (NationPress) In a significant blow to tax evasion within Kerala’s jewellery industry, the Kerala State GST Department has discovered sales suppression exceeding Rs 100 crore during an extensive operation dubbed ‘Arkenstone’.
The raids took place in Thrissur district from August 26 to 27, resulting in the confiscation of 36 kg of unaccounted gold stored unlawfully and the recovery of more than Rs 2 crore in taxes and penalties based on initial assessments.
Officials reported that the operation engaged nearly 200 officers from the State GST Intelligence and Enforcement Wing, who executed simultaneous inspections at 42 locations, covering the premises and homes of 16 jewellery traders.
The raids commenced at 4:30 PM on August 26 and concluded the following day.
The State GST Commissioner stated that the department is committed to enforcing strict measures against tax evasion in the jewellery sector.
This is not the first instance of Thrissur, a renowned centre for jewellery manufacturing and design in Kerala, being scrutinized by tax authorities.
Last year, a comparable operation named ‘Torre del Oro’ after the Golden Tower of Seville was executed across 75 locations in the district, resulting in the seizure of 105 kg of unaccounted gold from 35 jewellery firms.
Officials highlighted that these ongoing raids emphasize the persistent issues surrounding GST compliance within the industry.
Experts in the field suggest that this crackdown may have extensive repercussions, with the likelihood of more frequent and thorough inspections statewide, compelling jewellery firms to fully comply with GST regulations.
Under the GST framework, gold ornaments incur a 3 percent GST on the total value, which encompasses both gold and making charges.
In addition, a 5 percent GST applies specifically to making charges, although this is typically included in the 3 percent charge on the final price.
Legal experts emphasize that, according to Section 71 of the CGST Act, 2017, any officer authorized by the Joint Commissioner possesses the authority to inspect business locations.
Furthermore, Rule 139(1) mandates that such inspections must be approved in writing.
With ongoing large-scale confiscations, the State GST Department’s persistent operations illustrate a robust commitment to combat tax evasion and foster a fair environment in Kerala’s lucrative jewellery trade.
Point of View
It is evident that the GST Department is ramping up its efforts to tackle tax evasion in the jewellery sector. The findings from the Thrissur raids signal a significant commitment to enforcing compliance, reflecting a broader strategy to ensure fair practices within this vital industry. The nation must support such initiatives to foster a transparent economic environment.
NationPress
30/08/2025
Frequently Asked Questions
What was the purpose of the raids in Thrissur?
The raids aimed to uncover tax evasion and sales suppression in Kerala's jewellery sector, leading to significant findings.
How much gold was seized during the operation?
A total of 36 kg of unaccounted gold was confiscated during the raids.
What was the total sales suppression amount discovered?
The operation revealed sales suppression exceeding Rs 100 crore.
How many officers were involved in the operation?
Nearly 200 officers from the State GST Intelligence and Enforcement Wing participated in the raids.
What are the implications of these raids for the jewellery industry?
The raids may lead to more stringent inspections and enforcement of GST compliance across the industry, prompting businesses to adhere to regulations.
