Thrissur, Aug 29 (AHN) In one of the biggest crackdowns on tax evasion in Kerala’s jewellery sector, the Kerala State GST Department has unearthed sales suppression worth over Rs 100 crore during a massive operation codenamed ‘Arkenstone’.

The raids, carried out in Thrissur district between August 26 and 27, led to the seizure of 36 kg of unaccounted gold stored illegally and the recovery of over Rs 2 crore in tax and penalties from initial findings.

According to officials, the operation involved nearly 200 officers from the State GST Intelligence and Enforcement Wing, who conducted simultaneous searches at 42 locations, including the establishments and residences of 16 jewellery traders.

The raids began at 4.30 pm on August 26 and concluded the next day.

State GST Commissioner said that the department will continue to take strict action against tax evasion in the jewellery sector.

This is not the first time Thrissur, a major hub of jewellery manufacturing and designing in Kerala, has come under the scanner of tax authorities.

Last year, a similar operation codenamed ‘Torre del Oro’ after the Golden Tower of Seville was conducted across 75 locations in the district, leading to the seizure of 105 kg of unaccounted gold from 35 jewellery firms.

Officials noted that these repeated raids highlight the persistent challenges faced in ensuring GST compliance within the sector.

Industry experts suggest that the crackdown could have far-reaching implications, with more frequent and intensive inspections across the state likely forcing jewellery firms to ensure full adherence to GST norms.

Under the GST framework, gold ornaments attract 3 per cent GST on the total value, which includes both gold and making charges.

Additionally, 5 per cent GST applies specifically to making charges, but this is usually subsumed within the 3 per cent levy on the final price.

Legal experts also point out that, as per Section 71 of the CGST Act, 2017, any officer authorised by the Joint Commissioner has the power to inspect business premises.

Further, Rule 139(1) stipulates that such inspections require written approval.

With successive large-scale seizures, the State GST Department’s sustained operations signal a determined effort to curb tax evasion and establish a level playing field in Kerala’s lucrative jewellery trade.