Gold Inventory Rises up Fourfold

India is the second largest consumer of gold in the world, next to China. In accordance with provisional data from consultancy, Gold Fields Mineral Services (GFMS) showed that Gold imports have increased four times from last year to 103 tons in May, as jewelers are constantly purchasing recharge inventories and raising stocks before GST. Purchases were made in advance, close to 126 metric tons in May from 31.5 tons the previous year. Gold attracts 3 percent goods and services tax, which is in effect from July1. Ketan Shroff, the joint secretary at the India Bullion and Jewellers Association Ltd, mentioned that the rate is lower than anticipated. GST plays a major role in uniting India and attempts at providing a common market, to the citizens. The duty will supplant more than a dozen domestic levies, including state tariffs and excise tax. Since independence in 1947, GST is hailed as the biggest tax reform.  The massive import numbers were because people were worried about the kind of taxation that would come in but now that the tax has been fixed at a lower rate, imports will moderate going forward,” said Kunal Shah, head of research at Nirmal Bang Securities Pvt. over phone from Mumbai. India’s monsoon is expected to be normal and that would further underpin a demand recovery, he added. Demand is reckoned to be elevated by 2020 from an estimated 650 tons to 750 tons to somewhere between 850 tons to 950 tons this year. These are he consequences of new tax regime, the World Gold Council said in a report Thursday. “The gold supply chain should become more transparent and efficient, and the tax reform could boost economic growth, which we see as supporting gold demand.” said the council. This implied that the impact on the gold industry is positive. According to the finance ministry, as the fiscal year ended on March 31, the country’s imports descended to 716.4 tons that is about 20 percent, according to the finance ministry. 
Saurabh Jain
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Gold Inventory Rises up Fourfold

Saurabh Jain
Blog
12th Jul, 2017
Gold Inventory Rises up Fourfold

India is the second largest consumer of gold in the world, next to China. In accordance with provisional data from consultancy, Gold Fields Mineral Services (GFMS) showed that Gold imports have increased four times from last year to 103 tons in May, as jewelers are constantly purchasing recharge inventories and raising stocks before GST.

Purchases were made in advance, close to 126 metric tons in May from 31.5 tons the previous year. Gold attracts 3 percent goods and services tax, which is in effect from July1. Ketan Shroff, the joint secretary at the India Bullion and Jewellers Association Ltd, mentioned that the rate is lower than anticipated.

GST plays a major role in uniting India and attempts at providing a common market, to the citizens. The duty will supplant more than a dozen domestic levies, including state tariffs and excise tax. Since independence in 1947, GST is hailed as the biggest tax reform. 

The massive import numbers were because people were worried about the kind of taxation that would come in but now that the tax has been fixed at a lower rate, imports will moderate going forward,” said Kunal Shah, head of research at Nirmal Bang Securities Pvt. over phone from Mumbai. India’s monsoon is expected to be normal and that would further underpin a demand recovery, he added.

Demand is reckoned to be elevated by 2020 from an estimated 650 tons to 750 tons to somewhere between 850 tons to 950 tons this year. These are he consequences of new tax regime, the World Gold Council said in a report Thursday.

“The gold supply chain should become more transparent and efficient, and the tax reform could boost economic growth, which we see as supporting gold demand.” said the council. This implied that the impact on the gold industry is positive.

According to the finance ministry, as the fiscal year ended on March 31, the country’s imports descended to 716.4 tons that is about 20 percent, according to the finance ministry. 

Saurabh
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One of the Co-founders, Saurabh serves as an active advisor to several SaveDesk’s portfolio companies and also works closely with them to improve business performance, select key management personnel, ensuring statutory and financial oversight and compliance supported by various agreements.Prior to SaveDesk, Saurabh spent seven years with Standard Chartered Bank commercial banking team as an associate director, where he was responsible for client management,financial analysis, portfolio management and large ticket deal’s execution in South India. Saurabh holds an MBA in Marketing from the Institute of Technology Management, and graduated with Honors degree in Electrical and Electronics Engineering from RGPV, Madhya Pradesh

 

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