Now 22 days are left for the budget 2025 to come and on february 1, 2025, Finance minister Nirmala Sitharaman will present the country's budget. At this time, recommendations have been put before the Finance minister by the gold industry to reduce the GST (Goods and services Tax) on gold in the upcoming budget. At present, 3 percent GST is being levied on gold, gold jewelry and gems, which has been demanded to be reduced to 1 percent.
Custom duty was reduced in the last budget
In the last budget, the central government had reduced the custom duty on gold imports from 15 percent to 6 percent and this was the biggest duty cut after July 2013, after which the custom duty also came down to its lowest level. After this, gold imports also increased and this decision seemed to be proving to be accurate for the domestic gold demand because the demand for gold and gold jewelry is continuously increasing in India.
Keeping this in mind, there is a demand to reduce the GST on gold to give a big benefit. There is a demand to reduce the Revenue Equivalence Ratio of the industry to one percent, if this happens then gold buyers can get a big benefit. The gold industry has some demands and recommendations for which it is expecting from the Finance minister like-
The gold Jewellery Domestic Council (GJC) has demanded from the government that the 3 percent GST on gold should be reduced to one (1) percent so that the gold sector, which plays an important role in India's economy, will become more competitive and its benefit will be directly to the customers and gold buyers.
There are recommendations to support the gold Monetisation Scheme. Through this, efforts to bring gold holdings lying idle for years to the market on the basis of value will be strengthened. With this initiative, the gold lying unused in crores of houses in the country for years can be used to strengthen the economy.
The government needs to pay immediate attention to the obstacles in the trading of Electronic gold Receipts (EGR) and some action should be taken on this. Apart from this, there is a need for quick resolution of complaints related to GST and more clarity on the rules of hallmarking. Through these, an increase in the efficiency and reliability of the gold and jewelry industry will be seen.
click and follow Indiaherald WhatsApp channel