If the government accepts this demand, will buying gold become cheaper after the budget?

New Delhi. The gemstones and jewellery industry has appealed to the government to reduce the GST rate in the upcoming Budget 2025. There is a demand to reduce the current 3% GST to 1% so that the financial burden on the industry can be reduced. This reduction in GST rates will not only provide relief to the customers but will also strengthen the industry.

All India Gems and Jewellery Domestic Council (GJC) Chairman Rajesh Rokde has said that the rising prices of gold and the current GST rate are having a huge impact on the industry and customers, especially in rural areas. He says that the reduction in tax will increase the purchasing power of the customers and will also improve compliance.

Lab-made diamonds will be cheaper!
The council has suggested that different GST rates should be applied to natural and lab-made diamonds. This will promote the durable and affordable properties of lab-made diamonds. At present, a uniform 3% GST is levied on both types of diamonds.

GJC has also requested the government to create a dedicated ministry for the gems and jewellery industry and set up state-wise nodal offices. The council says that the appointment of a Union Minister can speed up the development of this sector.

Gold imports will decrease!
The council has also stressed the need to improve EMI facility and gold monetisation scheme. GJC Vice Chairman Avinash Gupta says that with the introduction of EMI facility, customers will be able to buy jewellery easily.

At the same time, improvements in the gold monetisation scheme will allow domestic waste gold to be used, which will reduce imports and make the country self-reliant. The industry hopes that these demands will be considered in Budget 2025 and these necessary steps will be taken by the government. This will benefit the gems and jewellery sector and will also provide relief to the customers.

It is worth noting that gold is imported to meet the demand in India. In such a situation, custom duty is levied on it. Earlier the custom duty on gold was 12.5 percent, which has now been reduced to 10 percent by the Government of India.

The Government of India has reduced the customs duty on gold and silver bars from 15% to 6% in the July 2024 budget. Apart from this, the customs duty on platinum, palladium, osmium, ruthenium, and iridium has been reduced from 15.4% to 6.4%.