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A comprehensive gold policy would be announced soon, said the India Bullion and Jewellers Association.
In a statement issued after its 14th edition of the India International Gold Convention 2017, organised in Goa, it said the ministries of finance, commerce and consumer affairs, the Reserve Bank of India and other stakeholders were coming out with a comprehensive gold policy.
The participants said the policy would include the setting up of a gold spot exchange for transparent trading and India good delivery standards which will give gold refunds in India as acceptable for good delivery and permitting banks dealing in gold to hedge in gold options (allowed last week by the markets regulator), with the Multi Commodity Exchange to begin doing so. It was also resolved at the conclave that industry stakeholders would be consulted on developments, to ensure hassle-free implementation. IBJA said Manoj Dwivedi, joint secretary on the ministry of commerce and industry, agreed for a stakeholder meeting twice a month.
Regarding import of gold without duty from Korea under the free trade agreement (FTA) with that country, experts proposed that a goods and services tax (GST) cess be levied. And, that this be done by partly reducing basic customs duty in such a manner that the net tax impact becomes equivalent for goods imported into the country from both non-FTA and FTA countries.
Giving faster GST refunds to exporters, relaxing e-way bill provisions for moving gold within a city and allowing banks to hedge their gold risks in options on derivative exchanges were other issues raised.