With gold becoming cheaper, customers waiting to buy jewelery for the wedding season of November-December this year have got a great opportunity. In fact, this year the custom duty on gold was reduced from 15 percent to 6 percent in the budget. After this, a decline in gold prices started, after which people who were waiting for jewelery to become cheaper got a chance.
At the same time, jewelers have also started trying different tricks to attract customers, including offers. 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 jewelery from customers, which they are giving these offers to convert into sales. Jewelers are giving these offers to clear their old stock as soon as possible.
Gold is available at Dubai price!
After the reduction in import duty, gold prices 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 gold becoming cheaper, the number of customers has increased by 60 percent.
Apart from offers, the possible GST increase is also being used to attract customers to the shop through other means. Jewelers are saying that to compensate for the reduction in custom duty of gold and silver, the government can increase the current GST rate of gold and silver from 3 percent to 9 to 10 percent. Experts are also saying that the GST rate will be increased from 3 to 5 percent.
Gold smuggling will stop!
However, the biggest benefit from the reduction in customs duty on gold will come in the form of stopping its smuggling. In recent times, smuggling of gold had increased significantly in the country. Industry people believe that the drastic reduction in duty will help in eliminating illegal imports. Traders believe that about 15 percent of the 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.