04-05-2025
Akshaya Tritiya gold sales under lend for GST evasion
Hyderabad: Large-scale evasion of GST payments by top jewellery showrooms in Hyderabad in the sale of gold ornaments on the auspicious occasion of Akshaya Tritiya on April 30, is now under investigation.
The State Commercial Taxes Department started scrutiny of the invoices for gold sales of higher values on that day. Following reports that many showrooms have not generated GST payment bills on exchange of old ornaments, the tax wing directed jewellers to submit details of all gold sales during the period. It is learnt that a few jewellers had insisted on cash payments from customers.
A team of officials of Commercial Taxes wing in the city visited top jewellery stores in Panjagutta, Basheerbagh, Kukatpally, Dilsukhnagar and Hitec areas. It sought all the details of the gold sales from the management on May 1 and 2. The data furnished by the enforcement officials who conducted surprise visits to the jewellery shops on the auspicious day was also being scrutinized to ascertain if any jeweller had violated GST rules in the sale of gold ornaments.
'We received information that some jewellers had not generated invoices on the sale of ornaments in exchange for the old ones. As per the rule, gold showrooms should also collect three per cent goods & services tax (GST) on the entire old ornaments which consumers bought.
However, many showrooms did not generate invoices with GST for old ornaments. Instead, they collected only IGST (1.5 per cent) and SGST (1.5 per cent) on the new ornaments from the buyers who sold old ones', a top official said, adding that on the Akshay Tritiya, most of the buyers purchased new ornaments by selling the old in the showrooms. Such violations were noticed in many jewellery showrooms and thereby depriving the state of earning precious revenue.
The State government was already serious about the decline of the GST collections from Telangana in the recent months, officials said, adding that since Akshaya Tritiya was a big occasion to generate good revenues, the Commercial Tax Department was scrutinizing all invoices and the stock details in the showrooms which reported huge gold sales this week in the city.
State Commercial Taxes Commissioner K Haritha instructed officials to examine the payment modes adopted by the showrooms for the sale of gold ornaments.
The authorities received complaints that a group of showrooms in Basheerbagh rejected digital, debit and credit card payments and the buyers were allowed only to pay cash on the purchase of gold. However, the officials did not divulge names of jewellery retail chains, which violated GST norms.
