Illegal gold movement: 70 jewellers under scanner for GST evasion

Central Goods and Services Tax (CGST) officials have busted a major racket of illegal domestic movement of gold jewellery and precious stones, and seized gold, precious

Central Goods and Services Tax (CGST) officials have busted a major racket of illegal domestic movement of gold jewellery and precious stones, and seized gold, precious stones and other items worth ₹26 crore.

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Senior CGST officials told HT that more than 70 jewellers from Mumbai, including some big players of the country’s gold hub, Zaveri Bazaar, are under scanner for involvement in the racket.

The anti-evasion wing of Mumbai Central GST recently received input about some jewellers in Hyderabad, Kolkata, Delhi and Chennai supplying gold bars and jewellery to a Mumbai-based jeweller without paying GST. Based on the input, a raid was carried out at the office of a courier company at the Santacruz Air Cargo Terminal on January 7 and seven consignments with illegally moved gold were seized.

During the probe it was revealed that an aggregator was playing the role of a common courier agent for the racket.

“We have identified the aggregator, who will soon face lawful action. More than 70 Mumbai-based jewellers are under the department’s scanner. Their names cannot be made public yet. The operation has for the first time revealed the unique modus operandi of the domestic movement of gold. Soon an offence will be registered and concerned persons will be arrested,” a senior CGST official told HT.