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GST Impact: Gold price likely to go up by Rs. 400 per sovereign
Posted on: 06/Jun/2017 4:32:38 PM
GST is scheduled to be implemented throughout the country from 1st July.
As per the GST, different slabs are imposed for different items. So, the prices of some of the items including gold are likely to go up.
Until now, 1% VAT was being charged for gold. However, with GST, it will be 3%.
The gold and jewellery shop owners plan to collect this tax from the customers.
The president of the Chennai Gold and Diamond jewellery traders association explained that gold jewellery has long been an essential item among most households. The people belonging to the different economic sections all would always like to buy gold jewellery. So far, the tax was only 1%. Now, it has been increased to 3%. So, for each sovereign of gold jewellery, the buyers will have to a pay a GST of Rs. 400 per sovereign. So, the GST tax has to be borne by the buyer.
The association has represented to the central government with an appeal to reduce GST from the proposed 3% to 1.35%.
5% GST will be charged for packed food items. Handmade clothes will have 7% GST. 5% GST will be charged for footwear costing below Rs. 500. GST of 18% will be charged for footwear costing above Rs. 500. Biscuits will have a GST of 18%.
Some states, including West Bengal, have appealed to the central government to postpone the implementation of GST.
However, the central government is resolute about implementing GST from 1st July as scheduled.
