HP Excise Department seizes gold worth Rs 1.10 crore

HP Excise Department seizes gold worth Rs 1.10 crore

During a drive against evasion of GST, by the State Taxes and Excise Department, a consignment of approximately 2 kg gold ornaments worth Rs 1.10 crore was seized in Hamirpur on Tuesday.

Informing this here on Wednesday, State Excise Commissioner Yunus said a penalty of Rs 6.55 lakh has been imposed for the violations. The department also carried out an inspection of a tobacco dealer suspected to have conducted evasion of GST in Shimla.

The dealer was found procuring some brands of cigarettes without proper documents, he disclosed.

The department has been maintaining a strong vigil to catch those evading GST so as to maximize the revenue collection and minimize evasion of Goods and Service Tax (GST) and has been focusing especially on evasion of GST on Gold and tobacco, said the Commissioner.

“Gold and silver attract a very low rate of GST of 3 percent whereas tobacco attracts GST rate of up to 188 percent, including compensation cess. Though the GST rate on gold is the lowest, however, due to the high value involved there is a high incentive for tax evaders in this commodity,” he said.

Similarly, the incentive for tax evasion in Tobacco items is very high due to the high rate of GST, he added.

The department maintains a special focus on tax evasion-prone commodities such as gold and tobacco, said he.

The department collected a sum of Rs 8 Crore through penalty on goods transported in violation of provisions of GST in the financial year 2022-23, said Yunus.

The Statesman

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