“In a bid to make the Sovereign gold bond scheme more attractive, it is expected that the upcoming budget will make the interest received on Sovereign gold bond tax free. It is suggested that capital gains tax on sale of old gold should be withdrawn. This will help in channelizing more old gold into the organised trade; jewellery shops and gold refineries, enabling the govt. to earn 3% GST revenue on gold purchased / sale as well.
Currently, there are no designated bullion banks in the country. Hence it is expected that the government must set up Bullion banks and these must be asked to maintain customer gold account in “Quantity” instead of “Rupee” account. This would prove beneficial in reducing import dependency. It is further expected that Union budget 2022, will make measures to reduce IGST rate on job-work charges from the current 18% for B2C and 5% for B2B transactions to 3%, at par with the IGST rate on sale of gold jewellery. The IGST input for sales of bullion made without the physical movement of goods should be permitted. GST rate on making on handcrafted jewellery and CTT should be reduced to zero as there is no fixed margin in bullion trade due to its international pricing mechanism. TDS on movement of bullion and TCS on sale of bullion must be reduced from 0.1% to 0.01% so that working capital is not blocked. Alongside the gems and jewellery sector should be exempted from the E-way Bill requirements, as it is important to recognise that there is a security threat to the life of the carrier.”