Page 28 - Bullion World Volume 3 Issue 4 April 2023
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Bullion World | Volume 3 | Issue 4 | April 2023
Highlights of IIBS Conference 2023
less than 10% of the capacity
for a while now, due to
discounts in domestic market,
1% concession gold coming
through UAE-CEPA gold
imports, and increasing cost of
operations and compliance.
(g) Removal of indexation benefits
on gold and silver ETFs is
expected to stall developments
of these regulated financial
products.
Some of the solutions proposed
IIBS 2023, the flagship conference price is at a discount, through by the industry.
of India Bullion & Jewellers a pass-book system for duty (1) Reduce customs duty on gold
Association on bullion, was held refund. imports and align taxation
between 24 and 25 March 2023. (c) Consignment business of with value-addition. Such an
The conference threw up several nominated banks has become arrangement would be revenue
critical points. Let me try to place erratic due to unpredictability neutral for the government
some of them before you. in demand and prevailing while at the same time would
discounts. Nominated banks curb illegal gold and promoting
(a) The price of gold in the Indian are also barred from doing legitimate business.
market is at a discount (to the consignment business with
derived landed price of gold LBMA-accredited suppliers (2) Resolve GST refund issues
basis London spot prices) since based in India. linked to gold converted to
first week of November 2022 EGRs. This could help bring out
(except for first and second (d) Overseas banks are facing substantial gold held by private
week of February 2023). The huge challenges due to erratic households.
industry believes that it is demand and are planning to
largely due to gold that is being recover storage charges from (3) Bring harmony between the
smuggled into the country. the importers. various official channels of
Gold and other precious metals supplies of standard gold.
are subject to 15% customs (e) With 15% customs duty, 3%
duty at the first point of entry, GST and 0.1% TDS/TCS, the (4) Unleash the power and
incentivising parallel trade. bullion dealing business is not potential of bullion banking by
Thus, the industry is unanimous viable anymore. Dealers were empowering nominated banks.
in its request for a reduction of playing an important role in
customs duty on gold. making metals accessible to the (5) To promote organised trade
manufacturers based in tier-2 and transparency reduce CTT
(b) The industry has also requested and tier-3 cities. and TDS/TCS.
for facilitating exportation of
gold bullion from accredited (f) The Indian bullion refiners are
refiners, whenever domestic operating their refineries at
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