Due to gold getting cheaper, customers waiting to buy jewellery for the wedding season of November-December this year have got a great opportunity. Actually, in the budget this year, the custom duty on gold was reduced from 15 percent to 6 percent. After this, the trend of decline in gold prices started, after which people waiting for jewellery to become cheaper got a chance.
Jewelers have also started trying different tricks including offers to attract customers. Jewelers have started offering 20 to 40 percent discount on the making charges of gold jewellery. The reason for this is the increased inquiries for jewellery from customers, which they are giving these offers to convert into sales. Jewelers are giving these offers to finish their old stock as soon as possible.
Gold is available at Dubai price!
After the reduction in import duty, the prices of gold in Dubai and India have become almost equal. In such a situation, jewelers are trying to attract customers by giving attractive slogans like buy gold at Dubai price. Anyway, due to the cheapness of gold, the number of customers has increased by 60 percent.
Apart from offers, the possible increase in GST is also being used to bring customers to the shops through other means. Jewelers are saying that to compensate for the reduction in custom duty on gold and silver, the government can increase the current GST rate of gold and silver from 3 percent to 9 to 10 percent. At the same time, experts are also saying that the GST rate will be increased from 3 to 5 percent.
Gold smuggling will be stopped!
However, the biggest benefit of reducing customs duty on gold will be in the form of preventing its smuggling. In recent times, gold smuggling has increased a lot in the country. People in the industry believe that a huge reduction in duty will help in eliminating illegal imports. Traders believe that about 15 percent of gold in the country reaches the market through smuggling, but now this will be stopped because after the reduction in import duty, there will be no benefit in buying smuggled gold.