Bhopal: GST take sheen off jewellery, sales down by 50%

Bhopal: GST take sheen off jewellery, sales down by 50%

Staff ReporterUpdated: Thursday, May 30, 2019, 04:51 AM IST
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Bhopal: The Good and Services Tax (GST) may hit the jewellery business hard. After the implementation of the GST, buying, making and repairing jewellery have become expensive for buyers and sellers both. The sales are down by 50 per cent. As per GST rules, the jeweller has to pay 3 per cent tax on buying any kind of jewelleries whether it is diamond, gold or silver while a buyer has to pay 5 per tax on jewellery repairing.

Traders and businessman dealing in diamond, gold and silver jewellery in the city rued that post GST it has become difficult for people to purchase jewellery. While there are many crying over the new tax rules, there are others for whom cashless transaction was more worrisome than the GST.

Pradeep Agrawal, owner of Ranjeet Mandir Jewellery, New Market told Free Press, “It has affected our sale a lot. Our sales are down by 50 to 50 per cent. Earlier, we paid 2 per cent tax including VAT and excise tax but now we are paying 3 per cent on purchasing jewellery. The tax on repairing Jwellery is 5 per cent. It means, Rs 30,000 jewellery will cost Rs 33,000 after adding GST,” he said adding that there was huge confusion among people regarding GST, since there is no clarity people are refraining from buying as the number of customers is quite less even in festive season.

“ Bahot jayada fark pada hai…. Our sales are down 50 per cent. Customers are not much aware from GST. They are not coming thinking the price of jewelleries have increased after the implementation of GST. We are also in fact not much aware,” said owner of Silver Jwellery shop, New Market.

Sarransh Agrabandhu, owner of Agrabandhu Jewellery Shop, New Market said “ Rate per jayada asar nahi pada hai but yes, the tax has increased one per cent than earlier. It is affecting public more than us because after all the customers have to bear it.” For us it is cashless transaction which is posing more problems. Since transaction is being done through POS machine, which charges a little bit more which the customer refuses to pay. Customers start arguing after seeing the final bill, he added.

“What can we do? We have no option. I think, it is affecting mostly middle class people. The price of every item has increased and inflation is increasing everyday. Hamare Kahne se kutchh nahi hota…., If any rule is implemented by government, we have to just follow it, ” said Vandna Ghuraiya who works in private firm.

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