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Published
Jun 27, 2022
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Four Patna jewellery shops face tax evasion charges

Published
Jun 27, 2022

Four jewellery stores in Patna, Bihar have been investigated by the Central Bureau of Investigation’s commercial taxes department which has concluded that they were engaging in tax evasion.

Tax evasion has been an issue in the fine jewellery in recent years - GJEPC India- Facebook


An investigation by local authorities was carried out from June 22 to 23 into four Patna jewellery shops and all four stores belonged to the same, as yet unnamed, proprietor, the Times of India reported. The investigation found that the retailers in question were not declaring their true revenue totals for tax and were holding more gold than what was listed in their stock registers. 

“The department is determined to take strict action against the tax evaders,” said Patna’s Central Bureau of Investigation’s commercial taxes department’s commissioner-cum-secretary Pratima, TNN reported. “Such action will boost the morale of the honest traders.”

The investigation unearthed over 13 kilograms of gold and over 1,600 kilograms of silver at one of the businesses under investigation. This stock had not been listed on the firm’s stores’ respective stock registers so that its sales revenue would not be taxed. 

The fact that India’s retail market is still mostly cash-based makes it easier for businesses to hide tax evading behaviours. This is one of the reasons why the government is encouraging both retailers and consumers alike to embrace digital payments in line with the wider organisation of the jewellery industry. 

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