e-invoicing system on the anvil for gold trade: Minister
Tue Oct 08 2024
Kerala will soon become the first State to roll out an e-invoicing system in gold business to prevent tax evasion, Local Self-Governments and Parliamentary Affairs Minister M.B. Rajesh said on Tuesday.
Responding to questions on behalf of Finance Minister K.N. Balagopal in the Assembly, Mr. Rajesh said massive tax evasions had been detected in the gold industry. Goods and Service Tax (GST) evasion to the tune of ₹488 crore was detected in 344 inspections conducted in the sector until September 30 during the current (2024-25) fiscal, of which ₹305 crore has been recovered by the GST department.
With such malpractices prevalent in the business-to-consumer (B2C) retail segment, the government will introduce the e-invoicing system that will provide details of purchases to the GST department and individuals as soon as the transactions are made. The GST Council had recently approved the long-standing demand raised by the State government, the Minister pointed out.
He added that the first-of-its-kind audit mechanism introduced by the State this year to prevent tax evasion and strengthen tax collection has been lauded, with officials from Karnataka, Gujarat, Maharashtra and Andhra Pradesh visiting the State to study the system.
Moreover, the State’s tax intelligence system, regarded the best in the country by the GST Council Secretariat, has helped nab tax evaders and recover over ₹2000 crore during the 2023-24 financial year, the Minister said.
However, Leader of the Opposition V.D. Satheesan faulted the government for its purported failure in tax collection. With roughly 65% of the roughly 300 tonnes of gold annually consumed by Kerala outside the tax net, gold business accounted for the highest tax leakage in the state, he alleged. Besides, tax collection has not increased commensurate with the record increase in gold prices since the advent of the GST regime, he added.
Source: https://www.thehindu.com