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GST regime: Tax hike could increase illegal gold sales

Under new regime, tax on gold has jumped to 3% from 1.2% previously

Reuters  |  Mumbai 

A hike in taxes on gold sales in India could stoke under-the-counter buying and drive up appetite for precious metal smuggled into the country, where millions of people store big chunks of their wealth in bullion and jewellery. As part of a new nationwide sales tax regime that kicked in on July 1, the Goods and Services Tax (GST) on gold has jumped to 3 per cent from 1.2 per cent previously, with traders and buyers saying the move will likely force more transactions into the black market. "Three per cent is too much. I preferred to buy without receipts. The jeweller did not ...

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First Published: Wed, July 05 2017. 02:31 IST
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