The onset of monsoon is generally not a good spell for jewellers. Considering a majority of the demand comes from the farmers in the rural areas, moneys will be spent on farming and they most invest in pesticides and the like by exchanging their existing ornaments for cash. Hence, the demand for gold mostly sees a sharp decline during this season.
The situation is trickier for jewellers as the lull is coupled with the new implementation of GST come July. A VAT (value added tax) of 1% of the price of the jewellery was added to the bill up until now. However, starting July, customers are eligible to pay 3% GST on jewellery they purchase and this would mean an inevitable increase in the price of the jewellery.
The likes of TBZ, Tanishq and Gitanjali Jewellers are offering heavy discounts on making chargers before the GST kicks in. Whether the demand for jewellery will see a sharp dip after the implementation of GST is a matter up for speculation and only time will tell.