CAIT demands reduction in GST on gold

Jamshedpur: Gold has always held immense significance in India, not only as jewellery but also as a part of cultural traditions, religious rituals, marriages, and as a trusted investment tool. However, the recent surge in gold prices has pushed it out of reach for the common people.

Expressing concern over the issue, Confederation of All India Traders (CAIT) National Joint General Secretary Suresh Sonthalia has written to Union Finance Minister Nirmala Sitharaman, demanding an immediate reduction in the Goods and Services Tax (GST) on gold. At present, 3% GST is levied on gold and 5% on making charges, which, coupled with rising prices, is adding to the burden of consumers.

Demands placed by CAIT: Reduce GST on gold from 3% to 1% with immediate effect. Introduce special schemes for small and middle-class consumers to promote gold purchases. Provide financial relief to artisans associated with the gold industry.

Sonthalia highlighted that gold continues to serve as a safe investment tool for the middle class, especially in times of inflation and economic uncertainty. He also pointed out that the gold industry supports the livelihood of lakhs of artisans and traders, whose earnings are being adversely impacted by high GST and price hikes.

“Understanding the difficulties of the general public, the government should take a sympathetic decision on this matter,” Sonthalia said.