Gold merchants seek settlement of pre-GST tax cases

The Kerala Gold and Silver Merchants Association has urged the State government to settle all tax-related cases pending from the pre-Goods and Services Tax (GST) era in the first Budget of the new government. The association also called for a package under which penalties are imposed only for actual violations detected during inspections. At its State Council meeting, the association pointed out that several cases challenging tax notices are pending before courts. According to the association, traders are being asked to pay tax, penalties and interest amounting to as much as ₹1 crore for errors involving only ₹10,000. The council also demanded stronger action against parallel gold trade and smuggling operations functioning without GST registration. It claimed that the annual turnover of the unregistered parallel sector exceeds that of the State’s 12,000 GST-registered gold traders, resulting in substantial tax leakage. Bringing such operators under the tax net would help increase government revenue, the association said. The association further requested the Chief Minister to constitute a commission to study the challenges facing the gold trade sector and formulate policies that support the industry’s growth. The council also decided to organise the Kerala Jewellery International Fair at Angamaly from July 3 to 5. A State convention, expected to attract more than 5,000 gold traders, will be held alongside the event.

(Source：The Hindu - Business Line)