InvestorQ : I read a news item that most jewellers in Dubai were celebrating the GST on gold in India. Why is that so?
Sam Eswaran made post

I read a news item that most jewellers in Dubai were celebrating the GST on gold in India. Why is that so?

Answer
image
swati Bakhda answered.
2 years ago
Follow

The UAE continues to be a major market where Indians travel to buy gold. The combination of 10% import duty and 3% GST will ensure that UAE continues to be a preferred gold shopping destination for Indian gold shoppers. A cut in import duty on gold would have been unfavourable for the Dubai gold markets. However, it needs to be remembered that gold now attracting a 5% VAT in all the Gulf Cooperation Council (GCC) nations from January 2018. That could reduce the lure of Dubai for gold purchases by Indian customers. However, this may not really be the case if the VAT is refunded for tourists as is done in most countries to encourage tourist shopping.

The big take-away from the 3% GST on gold is that it is likely to be largely neutral. On the positive side, it may begin the process of professionalization of the gold industry in India. The organized jewellery segment will surely have a lot cheer about. Above all the input tax credit (ITC) will ensure that the cascading effect of the GST is never there on the gold customers!

1 Views