India’s Gem & Jewelry Industry has for long voiced the need for a uniform tax policy. Now with the introduction of the GST bill in the parliament, that need is on the verge of being fulfilled given the fact that it is approved by both the houses of the Indian Parliament and also adopted at the state level by each and every state.
As expected, after the introduction of the GST, once it has the approval, some commodities will see a spike in their prices and the others will see a drop given the fact that some commodities are being charged at a higher level than GST as of now and some commodities are being charged at a lower level than the proposed GST.
When it comes to the Gems and Jewelry industry, the general consensus is that a uniform GST will be very beneficial across the board for the whole industry as it will give a uniform and standardized measure of determining the Market Rate Price for the jewelry items in particular and for the related raw materials in general.
The implementation of the 1% GST will also bring about the much needed transparency in the Jewelry trade weeding out the retailers and the manufacturers who are charging the customers at their sweet will.
The jewelers are also in favor of the GST as they believe that the single and uniform rate of GST will make sure that the areas that are outside the realms of the taxation as of now also fall under the umbrella of GST and the tax evasion on such items will also be reduced.
DISCLAIMER: The views expressed in this article are those of the author and may not reflect those of Jindal Bullion Limited. The author has made every effort to ensure accuracy of information provided; however, neither Jindal Bullion Limited nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Jindal Bullion Limited and the author of this article do not accept culpability for losses and/or damages arising from the use of this publication.