Budget 2025: Now 22 days are left for Budget 2025 and on February 1, 2025, Finance Minister Nirmala Sitharaman will present the country’s budget. At present, recommendations have been placed before the Finance Minister on behalf of the gold industry to reduce the GST (Goods and Services Tax) on gold in the upcoming budget. At present, 3 percent GST is being charged on gold, gold jewelery and gems, which has been demanded to be reduced to 1 percent.
Custom duty was reduced in the last budget
In the last budget, the Central Government had reduced the custom duty on gold import from 15 percent to 6 percent and this was the biggest duty cut since July 2013, after which the custom duty also came down to its lowest level. After this, the import of gold also increased and this decision seemed to be proving correct for the domestic gold demand because the demand for gold and gold jewelery is continuously increasing in India.
Keeping this in mind, there is a demand to give a big benefit by reducing the GST on gold. There is a demand in the industry to reduce the Revenue Equivalence Ratio to one percent, if this happens then gold buyers can get big benefits.
The gold industry has some demands and recommendations for which it is expecting from the Finance Minister like-
The Gold Jewelery Domestic Council (GJC) has demanded from the government that the 3 percent GST on gold should be reduced to one (1) percent, which will make the gold sector, which plays an important role in the Indian economy, more competitive and benefit from it. Directly to customers and buyers of gold.
There are recommendations to support the Gold Monetization Scheme. Through this, efforts to bring the gold holdings lying dormant for years into the market on value basis will be strengthened. With this initiative, the gold lying idle in crores of houses of the country for years can be used to strengthen the economy.
The government needs to immediately pay attention to the obstacles in the trading of Electronic Gold Receipts (EGR) and some action should be taken on this.
Apart from this, there is a need for quick resolution of GST related complaints and more clarity regarding hallmarking rules. Through these, the efficiency and reliability of the gold and jewelery industry will be seen to increase.
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