The All India Gem and Jewellery Domestic Council (GJC) has sought a reduction in import duty on gold, in its pre-Union Budget recommendations submitted to the Union Finance Minister.
Case for reduction
Anantha Padmanaban, chairman, GJC, said, “The 10% import duty on gold was levied to curb current account deficit (CAD). However, India’s trade deficit has narrowed to 2.5% of GDP in 2019, making it case for reduction. Duty cut will directly reduce other social and economic menace in the country.”
“We suggest making the Gold Monetary Scheme more effective, which will benefit the government and citizens at large. We have proposed key customer-friendly initiatives such as exemption from capital gains, enhancement of cash limits and PAN card limits, extension of EMI facility and availability of NEFT/RTGS on weekends,” he said at a press conference. To unlock family gold reserves of up to 24,000 tonnes and help reduce CAD, GJC urged the government to provide exemptions to households for minimum 500 grams of gold deposited under Gold Monetary Scheme (GMS), being of ancestral nature, from being questioned by any tax department.
Shaankar Sen, Vice Chairman, GJC, said “With respect to credit card commission levied by banks, we have urged the government to waive off the bank commission or reduce it to 0.20% thus ensuring a good boost to the ‘Digital India’ for the G & J Industry.
“We have also requested the government that in case 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. This will help the industry to move towards organized and compliant business practices,” he said.
“In case of remaking of new jewellery from old jewellery or old gold, GST is applicable at 18% on labour charges. Due to high rate of GST, the customers are reluctant to go for this option. The other option left with customer is to sell the old jewellery and buy new jewellery. However, as there is Capital Gains Tax involved, customers are hesitant for this option also,” Mr. Sen added.
Keeping in mind the hardships faced by the common man during such crisis, GJC has urged that the purchase limit in cash of ₹10,000 per day be increased to ₹1,00,000 per day. It has also asked the government to increase PAN card limit from ₹2 lakh to 5 lakh.
