Union Budget 2021: Preparations for the presentation of Budget 2021 are continuing in full swing. Meanwhile, budget demands and suggestions from various sectors are also increasing. The bullion industry has also sent suggestions to the finance ministry that can be included in the annual general budget for the gold industry. The Bullion and Jewelers Association, the apex organization of bullion and jewelery traders all over India, has sent low import duty on gold, low GST rate as well as some other suggestions to the Finance Ministry.
These suggestions have been given on the basis of the recommendations of the Gold Report issued by the NITI Aayog. According to the Bullion and Jewelers Association, the government may consider these steps of the gold industry in Budget 2021-
- Duty should be reduced on import of both gold form (bullion and mine door).
- Exemption of 3 per cent IGST paid by the exporter with customer duty should be exempted with the provision of bank guarantee. It should also be applied to the gold supply by the foreign buyer.
- Reduce the GST rate of three percent on gold to a reasonable level. Job workers receiving gold from other states should be considered exempt from GST registration.
- For exemption under GST, the limit of 20 lakh rupees should be revised on the basis of value-added.
- The CTT (Commodities Transaction Tax) on gold derivatives and the capital gains tax exemption provision for financial instruments related to gold should be removed.
- In case of search and Caesar procedures, up to 100 grams of gold jewelery held by a man, jewelery up to 250 grams with an unmarried woman and up to 500 grams with a married woman is exempt from seeding. This should also be applied to assessment procedures and seen as extended income.
- For the repair service of jewelery, the GST rate should be reduced from 18 per cent to 3 per cent.
Apart from this, the association has also sent the suggestions of the sub-committee constituted by the NITI Aayog Gold Report and requested to include them in the Budget 2021.
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