Sale of gem and jewelry is likely to drop 10-15 according to cent in the present-day economic yr because of Goods and Services Tax (GST), excessive gold charge, and coins flow problems, according to N Anantha Padmanaban, Chairman, All India Gem, and Jewellery Domestic Council.
In 2016-17, the sale of gem and jewelry became almost ₹3.60 lakh crore, which improved to ₹4 lakh crore last year. However, this fiscal, ‘we expect it to say no to ₹3.50-3.60 lakh crore,” he instructed.
“We had been hoping that GST will advantage the enterprise, but it has no longer as clients need to pay 3 in step with cent GST as towards 1 in step with cent Value Added Tax (VAT) before the GST regime,” he stated. A consumer needs to pay an extra ₹60-70 per gram of gold because of GST he delivered.
However, one exact factor about the GST is that it has added many gamers within the unorganized region into the organized area. Three-to-4 years in the past, eighty-five-ninety according to cent of the sale was via unorganized gamers as towards approximately 70 according to cent now. He said there are almost four lakh retail shops throughout the united states of America, with Tamil Nadu having the maximum numbers.
On the issue of coins waft, Padmanaban stated problems concerning more than one metropolis-based totally jewelers affected the industry in Tamil Nadu. However, after the Nirav Modi issue, the complete industry becomes affected by banks refusing to provide finance. The working capital requirement tiers among ₹10 crores and ₹seventy five crores consistent with yr relying on the jeweler’s size, he said. “The attitude of bankers is affecting the whole industry, and in turn affecting sales,” he stated.
“After the elections, we plan to satisfy all of the banks to sort out the hassle,” he said. High gold price, Padmanaban stated, turned into specifically because of the Dollar fluctuation. This is a big concern for the enterprise, he added.
The non-availability of professional employees is any other major trouble that is affecting the industry. Next, technology employees aren’t willing to enroll in the enterprise but choose IT or production jobs. “We plan to take in with the government to set institutes to educate workers in gem and jewelry,” he said.