e-way bill to regulate gold movement

GST subcommittee approves State’s demand

August 14, 2020 07:01 pm | Updated 07:01 pm IST - THIRUVANANTHAPURAM

Kerala will introduce e-way bill to check smuggling and regulate gold movement within the State, Finance Minister T.M. Thomas Isaac has said.

Briefing reporters about the decisions of Ministerial Subcommittee of the Goods and Services Tax Council here on Friday, Dr. Isaac said the subcommittee had cleared the State’s demand to introduce e-way bill within the State.

Earlier, when the State pressed for introducing e-way bill to check tax evasion and deter smuggling, Bihar, Gujarat, Maharashtra and some other States had opposed the proposal saying that publicising the details of gold movement would risk the lives of the traders.

Kerala stuck to its demand and the panel consented to the demand. Traders were so far carrying gold using a delivery note which was not a legally valid document.

3% penalty

On seizing smuggled gold, those held could get away after paying a 3% tax and an equal penalty as per Section 129 of the GST Act.

As per Section 130, the State had the right to confiscate the contraband, but this was not attempted. Recently a Gujarat High Court order had granted permission to invoke Section 130 and hence the State would go ahead with confiscation of the contraband, he said.

Since the provisions for confiscation have already been incorporated in the Act, there was no need for a new legislation, he said.

The government would offer a 20% reward to the informants and maintain the confidentiality of their details. The government has sought the opinion of the Advocate General for going ahead with the reform, he said.

Gold smuggling has been rising consistently and there was a rise in the quantity of gold seized. The volume increased from 890 kg in 2014-15 to 1,028 kg till 2019-20. The introduction of e-way bill would be a major deterrent, he said.

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