Jewellery shares gain after government fixes GST rate; Titan at new high
Titan Company, PC Jeweller, Gitanjali Gems and TBZ were up more than 4%
 "Jewellery shares gain after government fixes GST rate; Titan at new high")
premium
Shares of jewellery companies rallied by up to 15% on BSE in early morning trade after the Goods and Services Tax (GST) Council fixes GST rate at 3% for gold, gems and jewellery.
At 9:28 am, Titan Company, PC Jeweller, Gitanjali Gems, Tribhovandas Bhimji Zaveri (TBZ), Tara Jewels, Thangamayil Jewellery and Renaissance Jewellery were up more than 2% each, as compared to 0.20% decline in the S&P BSE Sensex.
“Currently, gold jewellers pay one per cent excise and 1.2% value-added tax (VAT) over and above the 10% customs duty on bullion. This effectively works out to 12.43%. With the introduction of GST at 3% for gold and 18% for making charges, and keeping customs at 10%, the effective rate comes to 15.67%. So, the effective price escalation on gold jewellery comes to 3.24%. This is still a win-win for gold jewellers; they would not have expected anything better than this, particularly after the chief economic advisor's report of Rs 10,800-crore subsidy on gold,” the Business Standard report suggests. CLICK HERE TO READ FULL REPORT
Among the individual stocks, Titan Company, the largest gainer among the pack, has rallied to its record high of Rs 543, up 15% on the National Stock Exchange (NSE) in intra-day trade. The trading volumes on the counter more than doubled with a combined 3.1 million shares changed hands on the NSE and BSE so far.
At 9:28 am, Titan Company, PC Jeweller, Gitanjali Gems, Tribhovandas Bhimji Zaveri (TBZ), Tara Jewels, Thangamayil Jewellery and Renaissance Jewellery were up more than 2% each, as compared to 0.20% decline in the S&P BSE Sensex.
“Currently, gold jewellers pay one per cent excise and 1.2% value-added tax (VAT) over and above the 10% customs duty on bullion. This effectively works out to 12.43%. With the introduction of GST at 3% for gold and 18% for making charges, and keeping customs at 10%, the effective rate comes to 15.67%. So, the effective price escalation on gold jewellery comes to 3.24%. This is still a win-win for gold jewellers; they would not have expected anything better than this, particularly after the chief economic advisor's report of Rs 10,800-crore subsidy on gold,” the Business Standard report suggests. CLICK HERE TO READ FULL REPORT
Among the individual stocks, Titan Company, the largest gainer among the pack, has rallied to its record high of Rs 543, up 15% on the National Stock Exchange (NSE) in intra-day trade. The trading volumes on the counter more than doubled with a combined 3.1 million shares changed hands on the NSE and BSE so far.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| TITAN COMPANY | 515.40 | 472.25 | 9.1 |
| PC JEWELLER | 549.05 | 503.05 | 9.1 |
| RADHIKA JEWEL. | 14.25 | 13.50 | 5.6 |
| GITANJALI GEMS | 70.50 | 67.05 | 5.2 |
| T B Z | 96.85 | 92.95 | 4.2 |
| WHITE ORGANIC | 68.00 | 65.70 | 3.5 |
| THANGAMAYIL JEW. | 257.35 | 248.85 | 3.4 |
| TARA JEWELS | 29.50 | 28.55 | 3.3 |
| RENAISSANCE JEW. | 193.05 | 187.75 | 2.8 |
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%