Major GST Raid Uncovers Rs. 100 Crore Jewellery Tax Fraud in Thrissur; Over 36 Kg of Unaccounted Gold Seized

Recently, the State Goods and Services Tax (GST) department has exposed fraud with a turnover limit exceeding Rs. 100 crore amid huge scrutiny codenamed Operation Arkenstone. The raid was commenced on August 26, 2025, and concluded on August 27, 2025. Jewellery businesses in Thrissur were targeted through this raid.

This is the second massive crackdown on Thrissur’s jewellery businesses in just one year. The department took its first major action in October 2024, in which 105 kg of unaccounted gold was confiscated, and raids were carried out across 73 distinct locations relating to 35 jewellery businesses and manufacturers. The department called that operation Torre del Oro (“Tower of Gold”). However, the operation at that time suffered great criticism from merchants for covering Kerala’s traditional gold ornament sector in their research. Merchants alleged the department tried to discolour the sector’s reputation.

The Arkenstone is a famous and special gem from J.R.R. Tolkien’s The Hobbit. It’s called the “heart of the mountain” because it is very important and valuable to the dwarves, who are the mountain people. It shows the strength and pride of their kingdom.

GST Intelligence and Enforcement Wing officers conducted several simultaneous inspections at 42 locations aligned to sixteen jewellers. These included business locations and residences. The raids resulted in the confiscation of more than 36 kilograms of unaccounted gold.

The early investigations have already collected more than 2 crore rupees in unpaid taxes and 3 crore rupees in fines. The GST Additional Commissioner said more steps will be taken against those who tried to avoid paying taxes.