GST reforms impact on gold and silver: The 56th meeting of the GST Council will be held in the first week of September. This is expected to reduce the prices of various things and services. Addressing the people of the country on the occasion of Independence Day, PM Modi announced the reforms in GST structure, which is expected to get a lot of relief to the common man. According to the new proposal, there will be only two-5 percent and 18 percent slabs in the new GST structure.
Will gold increase or decrease price?
At present, GST is charged at the rate of 3 percent on gold. Experts believe that 1 percent can be cut from 0.5 percent in GST on gold. However, traders are feared that it should not be increased to 5 percent. Due to this, the budget of the common man can be disturbed, so their demand has to be reduced instead of increasing GST on gold. If the government reduces GST on gold, then it will make prices cheaper. In such a situation, the demand is likely to increase during the festive season.
Will GST increase between rising prices?
Aksha Kamboj, Vice President of India Bullion and Jewelers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, while talking to Guditurn’s, said, as gold jewelery is bought as an investment or on a particular occasion, therefore, there is less burden on consumers in GST.
The GST rate on gold is currently 3 percent. The central government has a share of 1.5 percent and 1.5 percent of the state government. From GST gold jewelery to bar, coins are planted in all. In 2016, the Goods and Services Tax (GST) was implemented in India. During that time, 3 percent GST was imposed on gold. Earlier, 1 percent VAT was used on jewelery. In the last six months, there has been a tremendous bounce in the prices of gold, due to which people are already upset. If it is increased instead of decreasing GST on gold from above, then there may be trouble for the common man.
How much will the price be from 1 percent GST on gold?
If GST 1 percent is reduced on gold, then it will be reduced from 3 percent to two percent. In such a situation, if you buy gold worth Rs 1,00,000, then GST will sit around Rs 2,000. That is, it will decrease by Rs 1000.
Also read:
Now the house will have to buy cheaper, middle class will save up to Rs 7.5 lakh; Big benefits of GST 2.0
Khanderao Deshmukh aims to guide job seekers by delivering accurate, timely, and easy-to-understand information, helping them secure stable government careers.
