In a surprise operation, the State GST (SGST) department conducted one of Kerala's largest-ever raids on gold jewellers in Thrissur, seizing 108kg of gold linked to tax evasion. The raid, code-named 'Torre del Oro' after a Spanish monument, involved over 700 officers and targeted 73 locations, including godowns, manufacturing units, shops, and residences of 35 jewellers.
The SGST officers were initially gathered under the pretence of attending a two-day training in Ernakulam and Thrissur. Upon reaching the locations, they were informed of the real mission and barred from using mobile phones to prevent information leaks. Only four senior officials knew the operation's details, ensuring the raid’s secrecy.
The raid, conducted after seven months of investigation, centered around Thrissur, Kerala's hub for gold jewellery manufacturing. Four jewellers were immediately fined Rs 5.03 crore for GST evasion, with notices expected to be served to others involved. The department is currently reviewing documents and data seized during the operation to uncover the full scope of the evasion.
However, the Kerala Gold and Silver Merchants Association criticized the raid, accusing the SGST department of inflating the seizure figures. They argued that the officials weighed raw gold forms - blocks, powder, and threads - used in ornament production instead of finished jewellery, skewing the tax evasion claim. The association also alleged that registered jewellers who regularly file GST returns were unfairly targeted, while illegal smuggling of gold into the state continues unchecked.
The raid has sparked controversy within Kerala's jewellery industry, with concerns raised about the methods used and the potential impact on businesses already complying with GST regulations. As the investigation unfolds, more details on the extent of the tax evasion and future actions by the SGST department are expected in the coming weeks.
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