Jewellers return to unorganised sector, hurt by high taxes on imported gold

Jewellers see better business sense in the grey market

Jewellers are turning to the grey market to sell smuggled bullion or jewellery at a discount, escaping a 15.5 per cent duty they have to pay in their legitimate business.

Demonetisation in November 2016 and the introduction of goods and services tax (GST) in July 2017 spurred jewellers to register as small and medium enterprises (SMEs) or micro, small and medium enterprises (MSMEs), but they are now scaling or shutting down their businesses because they can’t compete with untaxed grey market gold.

There is a 15.5 per cent (12.5 per cent of import duty and 3 per cent of goods