Hamirpur: The State Taxes and Excise Department has intensified crackdown on GST evasion, leading to the detention of a consignment of approximately 2 kg gold ornaments worth Rs. 1.10 crore in Hamirpur on Tuesday. The department has imposed a penalty of Rs. 6.55 lakh for the violations, as stated by Commissioner Yunus in a press release.
In addition to the detention of the gold consignment, the department also inspected a tobacco dealer in Shimla, who was found to have procured some brands of cigarettes without proper documentation. The department has been closely monitoring potential GST evasion cases in order to maximize revenue collection and minimize GST evasion, with a particular focus on gold and tobacco.
The GST rate on gold and silver is set at a low 3 per cent, while tobacco attracts a much higher rate of up to 188 per cent, including compensation cess. Although the GST rate on bullion is low, the high value of this commodity still provides a strong incentive for tax evaders. Similarly, the high GST rate on tobacco items also provides a strong incentive for tax evasion. As such, the department has placed a special focus on tax evasion-prone commodities like bullion and tobacco.
According to the Commissioner, the department has collected a total of Rs. 8 crores through penalty on goods transported in violation of GST provisions during the financial year 2022-23. The department’s efforts to curb GST evasion are expected to continue in the coming months, with the aim of ensuring compliance with GST regulations and maximizing revenue collection for the state.
