SHIMLA: In a drive to check GST evasion by gold merchants,  jewellers and tobacco dealers. HP State Taxes and Excise Department caught  a consignment 2 kg gold ornaments worth Rs. 1.10 crore in Hamirpur yesterday.

A penalty of Rs. 6.55 lakh has been imposed for the violations, stated Commissioner Yunus in a press communiqué issued here today.

But this is being termed as a tip of iceberg as the "gold traders and jewellors remain the holy cow" so far, revealed sources.  

There are also complaints that the jewellers charge from the buyers at the prevailing rate of the 24 caret gold and the making charges, but they actually sell the 22 caret gold for jewellery and have been minting money from the consumers.       

Besides this, the department also carried out inspection of a Tobacco dealer suspected to have conducted evasion of GST in Shimla.

The dealer was found to be procuring some brands of cigarettes without proper documents.

The department has been maintaining a strong vigil to catch those evading GST so as to maximize the revenue collection and minimize evasion of Goods and Service Tax (GST). 

It has been focusing especially on evasion of GST on Gold and tobacco, said the Commissioner.

Gold and silver attracts a very low rate of GST of 3 percent whereas tobacco attracts GST rate of upto 188 percent, including compensation cess.

Though GST rate on bullion is the lowest, however due to high value involved there is high incentive for tax evaders in this commodity.

Similarly, the incentive for tax evasion in Tobacco items is very high due to high rate of GST. The department maintains a special focus on tax evasion prone commodities such as bullion and tobacco.

The department collected a sum of Rs 8 Crore through penalty on goods transported in violation of provisions of GST in the financial year 2022-23, he said.