KOCHI: The state goods and services tax (SGST) department, which successfully conducted a massive crackdown against 35 jewellers and ornament manufacturers in Thrissur last week in connection with GST evasion, suspects the firms were also involved in evasion of income tax (I-T). The department has shared the information with the I-T department for investigating the suspected income tax evasion.
The SGST department carried out the raids, code-named ‘Torre del Oro’ (Tower of Gold), at 73 locations in Thrissur on October 23 with the help of 700 officials. As much as 108 kg of gold was seized from 35 firms involved in the production and sale of gold ornaments.
A GST officer who was part of the investigation said the turnover of the firms is estimated to be Rs 1,000 crore. “We started assessment of tax evasion by the companies on Monday, and it would take at least three to four days to get an estimate.
Our preliminary assessment is that the turnover of these 35 firms is around Rs 1,000 crore. A majority of them have approached us to pay the penalty and GST to retrieve the gold,” said the officer.