How GST will affect India's gold industry


How GST will affect Indias gold industry

Here are some hints.

By Compiled by Alvin R. Cabral

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Published: Sun 9 Jul 2017, 9:36 AM

Last updated: Sun 9 Jul 2017, 2:14 PM

Indians are still divided on the newly-introduced Goods and Services Tax (GST) in the country; its effects will be realistically known after some time.
The World Gold Council, meanwhile, has posted a report that forecasts how the precious metal - a major investment for Indians - will play out, primarily due to GST.
. Demand: From 650-750 tonnes in 2017, demand in India will likely touch 850-950 tonnes by 2020.
. Transparency: The three per cent GST on the precious metal will bring greater transparency to the supply chain, which would bring more of the gold market into the formal sector.
. State revenues: GST should boost central government and state revenues by ?3.9 trillion.
. Pure play: The new tax regime will make it harder for retailers to under-carat their customers.
. Legalities: Regional and national jewellery chains account for only 30 per cent of the market; with GST, it will be difficult for grey- and black-market sellers to operate, thus ensuring legal means of transactions for gold.

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