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Govt is preparing to bring Gold under the E-way Bill System, Bullion traders said It will Increase Gold Price

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In the upcoming meeting of the GST Council, gold and price gems can be considered within the scope of the e-way bill. According to sources, this proposal can be sent from the states in view of the rising incidence of tax evasion amid rising gold prices.

The demand for bringing gold inside the e-way bill is first being made by Kerala Finance Minister Thomas Isaac. He has recently raised the issue of tax evasion, saying that Kerala used to get a revenue of Rs 627 crores from the tax on gold during the VAT period, which has now come down to only 220 crores. To prevent this tax evasion, it is necessary to bring the gold under the purview of the e-way bill at the earliest.

He is also seeking help from finance ministers of other states on this issue. In such a situation, it is expected that in view of the increasing incidence of tax evasion, other states should also pressurize the Finance Minister Nirmala Sitharaman to bring gold in the GST Council meeting within the e-way bill. The central government along with the state is also troubled by the GST tax collection. The Corona crisis and lockdown have led to a major reduction in GST collections. In this case, a decision on this is also expected soon.

A meeting of the Group of Ministers will be held soon on Gold’s E-way Bill System

According to sources, the Group of Ministers is going to meet to take forward the proposal to introduce e-well bill on gold to tighten tax evasion and GST compliance. The GoM will review a safe version of the e-way bill. Kerala says that even if this system does not apply in other states of the country, it should still be allowed to implement e-way bill on gold.

Bihar Deputy Chief Minister Sushil Kumar Modi, West Bengal Finance Minister Amit Mitra, Punjab Finance Minister Manpreet Badal are also part of this Group of Ministers. The GoM will also suggest other measures to curb tax evasion. Last year some members of the GoM were of the opinion that other measures need to be considered instead of e-way bill.

E-way bill system on Gold will help to stop Tax evasion

Indirect tax expert Brijesh Varma says that bringing gold under the purview of the e-way bill would go a long way in preventing tax evasion. However, before bringing gold under the ambit of the e-way bill, it will be necessary to have a fixed format, otherwise the common people will start having problems. It can be understood that e-way bill is mandatory for transporting goods worth more than Rs 50,000 in the country.

In such a situation, if someone buys gold jewelery for his wife or child, then he can also come under this purview. In this situation, it will be difficult for the tax officer to investigate. To avoid this, it will be necessary for the common people to give a discount on the purchase of gold to a certain extent.

Disadvantages of E-way bill

Yogesh Singhal, president of The Bullion and Jewelers Association, told that we are opposing bringing gold into the e-way bill because the secrecy will end after that. The e-way bill contains all the details that the employees can assign to the wrong hands. This will increase the risk of grazing or robbing during transportation. If the government arranges that it will compensate for the loss during transportation, then we have no problem.

Gold price will be Increase after release of E-way bill on Gold said Bullion traders

Bullion traders say that a big gold business is a cash. Implementation of e-way will end the cash trade in gold. This is because the implementation of the e-way bill will record all transactions and its effect will be seen on gold prices. Further increase in gold prices can be seen thereafter.

What are the new rules of E-way Bill

  • E-way bill compulsory in transporting goods worth more than Rs 50,000
  • The system of e-way bill for interstate transport was introduced in 2018.
  • Illegal gold traders are exempted by paying 03% GST and 3% penalty
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