Raipur, Apr 03:
Gold Rs 31,800 per 10 gm
Silver Rs 39,400 per kg
Gold prices have gone up prior to marriage season. On Tuesday Gold prices touched the level of Rs 31,800 per 10 gm at Raipur market and Silver was priced at Rs 39,400 per kg. The price last year on April 3, 2017 was Rs 29150 per 10 gm Gold and Silver Rs 42400 per kg. The prices of precious metals during last 2 months have surprised the bullion traders.
The high price of gold had been less of a deterrent to demand, the traders said that if marriages are there, business is there. People have now shifted their choice to light-weight jewellery. Showrooms have wedding collection of wide range of specially designed jewellery.
With the price shooting up, most of the showrooms are offering wide range of small gold necklace sets, chain pendants, bracelets and exclusive rings of light weight. It is notable that marriage season will start from April 16 which will continue till mid July. On the global front, the shiny-metal traded up and in domestic market also the prices have gone up. Bullion traders said that due to heavy demand in international market, the price of yellow metal has shot up in domestic market.
Prior to GST, the taxes on Gold were 1 per cent VAT and 1 per cent excise duty. Now there is 3 per cent GST on Gold. Bullion traders have demanded to reduce GST on Gold so that customers can get gold at low price. On purchase of Rs 1 lakh jewellery the customer has to pay Rs 3000 as GST and Rs 1750 as Card Swipe charge which means a total of Rs 4750 has to be paid by the customers. On one hand the government is promoting cashless economy whereas on other hand the customers have to pay a heavy price for card swipe.
The Income Tax Department has been levying 1 per cent TCS on cash purchase of bullion in excess of Rs 2 lakh and jewellery in excess of Rs 5 lakh since July 1, 2012. With the amendment proposed in the Finance Bill 2017, jewellery purchase of over Rs 5 lakh in cash is being omitted from the ambit of TCS but will now be classified as ‘other goods’ and the 1 per cent levy be provided if cash consideration is over Rs 2 lakh.
With the prices of yellow metal going up the demand for artificial jewelleries have also shoot up. Given the hike in gold price, customers are now preferring light-weight jewellery. As there is low demand of silver in the market the prices of Silver have gone down and at present it is priced 39,400 per kg.
Traders said that this is the best time for investment in jewellery. There is hike of Rs 2000 to Rs 3000 from last two to three years in precious metal.