The response to GST this month has set off a commotion in the jewellery industry. While some jewellers said that this is a welcome change, some jewellers feel that this move will definitely weaken the business.
In the midst of all this, Kerala based jeweller, Malabar Gold & Diamond has decided against imposing 3 per cent GST on consumers, thereby there will be zero per cent GST on them while buying jewellery. According to other Kerala-based retailers this is a questionable move, as something like this by a large chain such as Malabar could hurt the business for other jewellers.
Kerala is one of the biggest consumers of gold in India and accounts for a large share of gold consumption. After the GST roll out, the price of gold has significantly dropped, as earlier, buyers had to pay 5 per cent VAT as opposed to 1-1.2 per cent over and above 1 per cent duty.