Pune: City-based jewellers are experiencing a negative impact on the growth of the industry from the last two years, particularly after demonetisation and implementation of Goods and Services Tax (GST). All this, despite the country being the second largest importers of gold.
Fatehchand Ranka, President of the Pune Saraf Association and Director of Ranka Jewellers, said, “After the introduction of GST on July 1, 2017, and demonetisation on November 6, 2017, the jewellery business or industry has been facing intense ups and downs. There was a negative impact on the jewellery industry after the GST and demonetisation were announced, as earlier, the VAT on gold import duty was one per cent. However, after the GST was introduced it went on to three per cent which had majorly affected the business.”
Nitin Ashtekar, Vice President of Pune Saraf Association and Chairman of Ashtekar Jewellers, said, “Despite the country being the second largest importer of gold, the business was affected. The government not only imposed GST and demonetisation but it also did not have any part in promoting the jewellery industry. Since gold rates were hiked in the initial stages, people were shying away to purchase it which affected the employees in the industry.”
“The next elected government should remove the unnecessary taxes on gems, jewellery and bullions and should support and promote the industry,” Ashtekar and Ranka both had similar opinions from the next elected government.
On the other hand, Govind Gadgil, Chairman, PN Gadgil & Sons Ltd, said, “Demonetisation and implementation of GST will have a long-term positive impact on the economy. Considering the current scenario any tax rate cut would be a welcome move as gold has now 10 per cent import duty and 3 per cent GST. Two per cent of GST rate cut will help the jewellery industry and that is what we are expecting from any government which will come into power.”
