Jewellery sales rise 50% on freebies ahead of GST roll-out

Jewellers have had a 50 per cent increase in their business over the past one week, with consumers rushing in to buy ornaments ahead of GST (goods and services tax) roll-out and the consequent price increase. Many jewellers have offered up to 100 per cent discount on diamond jewellery making charges, and up to 50 per cent rebate on making of gold ornaments. Since the making charge works out to 12-18 per cent of the total value of the gold product, consumers rushed to jewellery shops to make future bookings and also build inventory for occasional use. With regard to diamond jewellery products, however, making charges are higher than those for gold. Financial Astrology Tips 

"There is a rush in jewellery shops today with consumers buying aggressively ahead of the GST roll-out on July 1. With the implementation of the new tax regime, prices of gold would go up. So, consumers are booking their piece ahead of the price increase," said Nitin Khandelwal, Chairman, All India Gems and Jewellery Trade Federation (GJF). In addition to the existing customs duty of 10 per cent, the government had levied an excise duty charge of 1 per cent and another 1.2 per cent charge to be collected as value added tax. So, overall tax levies during the pre-GST regime worked out to 2.2 per cent, as against 3 per cent in the post-GST era. This means, gold would become costlier by 0.8 per cent from July 1 onwards. Many jewellers, however, were exempted from excise duty as their business units were smaller. Hence, the overall levies in their case would remain at a negligible 1.2 per cent only. Now, all of them would have to pay 3 per cent of GST in a move that would make gold become costlier by 1.8 per cent for them. Astrology and Numerology Trading Tips