Gold industry seeks ‘One Nation, One Rate’, beginning from East India

The All India Gem and Jewellery Domestic Council has appealed to the GST Council to reduce the rate on jewellery from the current 3% to 1%. 
| Photo Credit: AP

“The gold jewellery industry is advocating a ‘One Nation, One Rate’ policy, starting with a unified rate for Eastern India from August,” an official said on July 26.

Samar. Kr. De, President of the Swarna Silpa Bachao Committee, said, “All stakeholders have shown interest in the idea of a unified gold rate across the country.”

“We will begin with a single rate for West Bengal and eastern India from August and have onboarded bullion sellers for this initiative,” Mr. De added.

Saiyam Mehra, Chairman of the All India Gem and Jewellery Domestic Council (GJC), said, “The idea is to create a level playing field for all stakeholders and prevent undercutting.” Mr. De said that they aim to extend the ‘One Gold Rate’ policy nationwide within the next six months and are in discussions with large national jewellery retail chains. He also noted that the recent 9% duty cut was unexpected by the industry.

Union Finance Minister Nirmala Sitharaman in the recent Union Budgetslashed import duties on gold and silver from 15% to 6%. Industry players said that the sharp duty cut will help eliminate illegal imports.

“Gold smuggling is estimated to be 100 tonnes out of the total import of some 950 tonnes,” said Sunny Dholakia, a diamond importer.

However, there is a concern about whether the government has any other plan regarding the Goods and Services Tax (GST) concerning gold, according to industry sources.

The GJC has appealed to the GST Council to reduce the rate on jewellery from the current 3% to 1%.