Jewellers try to push old stock before GST roll-out

With only a few days more for implementation of the Goods and Services Tax (GST), jewellers have intensified their efforts to replenish inventory by offering discounts on making charges for ornaments. Precious ornaments are estimated to become three per cent costlier under GST. At this time, jewellery demand normally declines. Two-third of the demand comes from the rural sector and farmers' attention would be on sowing, planting and re-planting. With the onset of monsoon rain, farmers purchase seed, fertiliser and pesticide by liquidating old ornaments, resulting in a sharp increase in scrap supply. And, demand for new ornaments declines sharply because of the lack of weddings, festivals and such occasions. This year, however, the lean season demand also coincides with GST implementation, to start from Sunday. Till now, jewellers were charging value added tax (VAT) of one per cent over and above the price of gold, with the latter's price including the tax. And, the norm was to less VAT to the government than they used to collect from customers. Astrology and Numerology Trading Tips