THIRUVANANTHAPURAM: The GST Council's decision on Tuesday, which mandated an authorized document or e-way bill for intra-state movement of gold jewelery worth Rs 2 lakh and above, has sparked widespread concern.

The worry is that if caught carrying even four sovereigns of gold without an invoice or bill, fines and taxes will have to be paid. If bought by the general public, a shop bill is required. If you are a manufacturer of gold jewellery, then you need a document related to it. Many people carry traditional gold in their bags while traveling for functions including weddings. Will that be caught too? Gold kept at home is often taken as a gift. Would that be a problem? People have many concerns.

The Gold and Silver Merchants Association says the e-way bill for gold is not the right move. They also say that this is eliminating small traders. Although approved by the GST Council at the national level, the e-way bill for intra-state gold movement is being implemented only in a few states including Kerala.

Gold traders ask

1. How will tax officials identify whether gold is being transported for personal or commercial purposes? Jewelery goes through many factories and labs before it reaches the market. Requiring an e-way bill at every stage of moving from one place to another can lead to information leakage. It can affect security.
2. Gold traders with an annual turnover of up to Rs 40 lakh have been exempted from the ambit of GST. If a trader who is thus exempted goes with 32 grams of gold, or is caught with gold worth more than Rs.2 lakhs, how can the benefit of up to Rs.40 lakhs be effective?

"The move to introduce e-way bill for gold is causing difficulty for traders and consumers alike.

S Abdul Nasser,

All Kerala Gold and Silver Merchants Association

(AKGSMA) State Treasurer

"The e-way bill has been approved for the movement of gold within the state, but how to implement it is yet to be decided. It will be decided after clearing all concerns only.

State Finance Department

To prevent tax evasion

The finance department has estimated that the gold trade sector recorded a turnover of Rs 1.01 lakh crore in the state in 2021-22. According to this, the total GST to be collected is about 3,000 crore rupees. Of this, about 1,500 crore should be received as state share. However, only 393 crore was received as SGST that year. Therefore, the government is of the view that it is necessary to take action to prevent tax evasion.