GST : Will GST on gold be reduced in the budget- will the government give the gift of cheap gold..

The Gold Jewellery Domestic Council (GJC) has called on the government to lower the GST on gold from 3 percent to 1 percent to enhance business sentiment in the industry.

GST

GST : There are now 22 days remaining until the 2025 budget is announced, and on February 1, 2025, Finance Minister Nirmala Sitharaman will present the national budget. Currently, the gold industry has submitted recommendations to the Finance Minister to lower the GST (Goods and Services Tax) on gold in the forthcoming budget. At present, a 3 percent GST is applied to gold, gold jewelry, and gems, and there is a demand to reduce it to 1 percent.

Custom duty was reduced in the last budget

In the recent budget, the central government lowered the customs duty on gold imports from 15 percent to 6 percent, marking the largest duty reduction since July 2013, which brought the customs duty to its lowest point. Consequently, gold imports increased, and this decision appeared to be beneficial for the domestic gold demand, as the demand for gold and gold jewelry continues to rise in India.

Considering this, there is a call to reduce the GST on gold to provide significant benefits. The industry is requesting that the Revenue Equivalence Ratio be reduced to one percent, which could greatly benefit gold buyers.

The gold industry has certain requests and suggestions that it hopes the Finance Minister will address.

The Gold Jewellery Domestic Council (GJC) has urged the government to reduce the 3 percent GST on gold to one percent. This change would enhance the competitiveness of the gold sector, which plays a crucial role in India's economy, and its benefits would directly reach customers and gold buyers.

There are suggestions to enhance the Gold Monetisation Scheme. This initiative aims to mobilize gold holdings that have been dormant for years by bringing them into the market based on their value. By doing so, the gold sitting unused in millions of households across the country can contribute to strengthening the economy.

The government must promptly address the challenges in trading Electronic Gold Receipts (EGR) and take action on this matter. Additionally, there is a need for a swift resolution of GST-related complaints and greater clarity on hallmarking regulations. These measures will improve the efficiency and credibility of the gold and jewellery industry.