How expensive will jewelry become due to increase in tax on gold, calculate in this easy way

Gold jewelery will become expensive due to increase in import duty on gold

Due to the increase in tax, the price of 22 carat gold has increased by Rs 1,000 per 10 grams. Due to this jewelry has also become expensive and gradually more increase will be seen in it. Last week, the price of gold remained at a two-month high.

in corona gold price ,Gold PriceThere was a fire just like this, from above the government increased the import tax. This ended the hope of cheap jewelry and now you have to pay more money. The government recently imposed import duty on gold (Gold Import Duty) from 10.75 per cent to 15 per cent. This decision was taken to stop the rapidly slipping rupee against the dollar day by day. The money did not stop well, people’s pockets definitely started getting loose. With the increase in import duty on gold, the price of jewelery will see a rise. When you go to the jewelery shop to buy jewelry, you will know how much more money you have to pay than before.

Now you want to know that import duty Why is it being increased, then one should know about the current account deficit. Actually, India is the second largest gold importer country in the world. To import gold, the government has to spend a large amount of foreign currency. Increase in imports and outflow of foreign currency puts further pressure on the current account deficit. To reduce this pressure, the government increased the import duty so that imports could be reduced and foreign currency could also be prevented from coming out. But it will have a big impact on the common people that the ornaments bought in marriage-interest or auspicious-lagna etc. will become expensive.

What will be the effect of increasing the tax

Most of the import of gold in India is done for making jewelry. In India, gold ornaments are not only used in make-up but are also considered to be the biggest means of investment. In common parlance, it is said that in bad times, emergency expenses can be met by pledging jewellery. There is very little chance when the price of gold falls. Even if it falls marginally, no other commodity is considered as a better source of investment in the long term. Since most of the imported gold is used in making jewellery. Therefore, due to increase in import duty, the price of gold and its ornaments will also increase.

The government has also increased the custom duty on diamonds, whose effect will be visible on diamond jewelry as well as gold jewelry. Apart from increasing the custom duty, the government has increased the rate of GST on cut and polished diamonds from 0.25 per cent to 1.5 per cent. This rule is effective from 18th July. With this new rule, the price of diamonds will not only increase, the gold ornaments in which diamonds are studded will also become expensive. In this way, the total import tax on gold has gone up to 15.75 percent, which includes 12.50 percent basic import duty, 2.5 percent agri cess and 0.75 percent social welfare surcharge. Apart from this, 3% GST is levied on gold.

Due to the increase in tax, the price of 22 carat gold has increased by Rs 1,000 per 10 grams. Due to this jewelry has also become expensive and gradually more increase will be seen in it. Last week, the price of gold remained at a two-month high. A similar increase is being seen in Gold Futures as well. Right now the price of gold is hovering around Rs 53,000 per 10 grams and after increasing the import duty, more will be seen. Now let us know how to calculate the price.

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how to calculate

Jewelers apply a fixed formula to determine the price of gold. This includes the scale of accuracy and prescribed weight. Apart from this, GST and making charges are also included. To calculate the price, the price of 10 grams of gold is taken, in which the price of 22 carat or 18 carat gold is taken. This price is multiplied by the grams of gold. Making charge is added to this house. In this, 3% GST will be added on the cost of jewelery and making charges and finally a hallmarking charge of Rs 35 will be added. This will calculate the entire jewelry.