Indians start buying more Gold from Dubai after GST

INDIA July 20 2017 2:32 PM
MUMBAI (Scrap Register): After the introduction of Goods and Service Tax (GST) Gold players were afraid of how will it affect the players to import Gold. Now India has started to buy Gold from Dubai after implementing a 3 percent GST on Gold which makes it more profitable.

There is a noticeable increase in the sale of Gold in the United Arab Emirates market in the past two weeks and Indians are among the main buyers. "The immediate trigger is the revised tax structure for gold in India. UAE price continues to be much lower in comparison," Ahammed MP, chairman, Malabar Gold & Diamonds quoted to Economic Times.

An increase of 5 to 10 percent in the tax was estimated by the jewelers, but it turns out to be a difference of 13 percent which is more profitable and making it the main reason to increase the buying in Dubai. Gold purchased in India is costlier by Rs 3600 per 10 gm than in Dubai.

The gold price was quoted at Rs 29210 per 10 gm, inclusive of import duty and GST, whereas the cost in Dubai is Rs 25524 per 10 gm. Jewellery will remain costlier in India even after the planned imposition of 5 per cent VAT in the UAE from January 2018.