Cut import duty on gold, says gems/ jewellery sector

Image result for Cut import duty on gold, says gems/ jewellery sectorThe All India Gem and Jewellery Domestic Council (GJC) has sought a reduction in import duty on gold and called for increasing the cash purchase limit of gold to 1 lakh, from 10,000.

In its Budget wishlist submitted to the Finance Minister, it urged for extending the EMI facility to purchase jewellery and make NEFT/ RTGS facility available on weekends when gold jewellery purchases are done.

Trade deficit

Anantha Padmanaban, Chairman, GJC, said the 10 per cent import duty on gold was levied to curb Current Account Deficit. However, India’s trade deficit has narrowed to 2.5 per cent of GDP in 2019.

To unlock family gold reserves of up to 24,000 tonnes and help reduce CAD, the Council said exemptions must be given to households for minimum 500 grams of gold deposited under the Gold Monetary Scheme without being questioned by the Tax Department.

Shaankar Sen, Vice-Chairman, GJC, said government should instruct banks to waive off the commission or reduce it to 0.20 per cent to boost digital transactions.

“We also request the government that in case the jewellery sold is reinvested in new jewellery, the exemption from Capital Gain as per Section 54F of the Income Tax Act 1961 should be the extended to G&J Industry,” he said.

In the case of making of new jewellery from old jewellery or old gold, the GST is applicable on labour charges is at 18 per cent. Due to high rate of GST, customers are reluctant to go for this option.

PAN card limit

The Council recommended increasing the PAN card limit from 2 lakh to 5 lakh. Many households do not have PAN cards, especially in the agriculture sector. Hence, they face difficulty in furnishing the same, said the Council.