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Will your gold ornaments be costlier ?

Hey guys, Do you know India is the second biggest consumer of gold across the globe ? I bet you know that. Attention ladies who like the yellow metal. This may be the article of your choice. If you want to buy a lot of gold do it now, otherwise post july buying the same amount of gold will burn a larger hole in your pocket. You may be wondering why are we saying this. Yes, it is true trust us. Read our below article if you really want to know why!!!

Gold may become costlier for Indians if the government accepts chief economic advisor Arvind Subramanian's suggestion to put the yellow metal in the 12% tax bracket under GST.

With an import duty of 10%, the total tax on gold may turn out to be 22%, which will reduce its consumption in the physical form in the second largest gold-consuming nation in the world.

At present, gold attracts an import duty of 10%. In addition, there is a VAT of 1% and an excise duty of 1%. For a healthy development of trade, GST and import duty combined should not cross 12%, ideally, it should be in the range of 10-12 %.

Late last year, there was agreement on five broad GST slabs -0 (the exempted category), 5%, 12%, 18%, and 28%. While retailers and jewellers want the government to peg GST at 1.25%, keeping the customs duty intact at 10%, manufacturers and bullion dealers want a 6% GST and an import duty of 6%. Surendra Mehta, national secretary, India Bullion & Jewellers Association, reckons that import duty should be at 6% and GST should be 6%.

If the tax incidence remains high, then there's a propensity among people to evade tax. And that results in entry of gold through the illegal route which no government would like. The darker side of this high tax rate may be that it will induce the gold smugglers, even more, to defraud the government even more.

Although the above tax rate of GST is only tentative as the final GST slab rates have not yet been finalised.

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<p>Gold may become costlier for Indians if the government accepts chief economic advisor Arvind Subramanian's suggestion to put the yellow metal in the 12% tax bracket under GST. <br /><br />With an import duty of 10%, the total tax on gold may turn out to be 22%, which will reduce its consumption in the physical form in the second largest gold-consuming nation in the world. <br /><br /></p>
<p>At present, gold attracts an import duty of 10%. In addition, there is a VAT of 1% and an excise duty of 1%.&nbsp;For a healthy development of trade, GST and import duty combined should not cross 12%, ideally, it should be in the range of 10-12 %.</p>
<p><br />Late last year, there was agreement on five broad GST slabs -0 (the exempted category), 5%, 12%, 18%, and 28%. While retailers and jewellers want the government to peg GST at 1.25%, keeping the customs duty intact at 10%, manufacturers and bullion dealers want a 6% GST and an import duty of 6%. Surendra Mehta, national secretary, India Bullion &amp; Jewellers Association, reckons that import duty should be at 6% and GST should be 6%. <br /><br /></p>
<div>If the tax incidence remains high, then there's a propensity among people to evade tax. And that results in entry of gold through the illegal route which no government would like. The darker side of this high tax rate may be that it will induce the gold smugglers, even more, to defraud the government even more.&nbsp;<br /><br />Although the above tax rate of GST is only tentative as the final GST slab rates have not yet been finalised.<br />
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<p>Gold may become costlier for Indians if the government accepts chief economic advisor Arvind Subramanian's suggestion to put the yellow metal in the 12% tax bracket under GST. <br /><br />With an import duty of 10%, the total tax on gold may turn out to be 22%, which will reduce its consumption in the physical form in the second largest gold-consuming nation in the world. <br /><br /></p>
<p>At present, gold attracts an import duty of 10%. In addition, there is a VAT of 1% and an excise duty of 1%. For a healthy development of trade, GST and import duty combined should not cross 12%, ideally, it should be in the range of 10-12 %.</p>
<p><br />Late last year, there was agreement on five broad GST slabs -0 (the exempted category), 5%, 12%, 18%, and 28%. While retailers and jewellers want the government to peg GST at 1.25%, keeping the customs duty intact at 10%, manufacturers and bullion dealers want a 6% GST and an import duty of 6%. Surendra Mehta, national secretary, India Bullion & Jewellers Association, reckons that import duty should be at 6% and GST should be 6%. <br /><br /></p>
<div>If the tax incidence remains high, then there's a propensity among people to evade tax. And that results in entry of gold through the illegal route which no government would like. The darker side of this high tax rate may be that it will induce the gold smugglers, even more, to defraud the government even more. <br /><br />Although the above tax rate of GST is only tentative as the final GST slab rates have not yet been finalised.<br />
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Will your gold ornaments be costlier ?