GOLD NEWS

Jewellery manufacturers in Coimbatore seek tax refund on gold metal loans

Sun Aug 11 2024

The Coimbatore Jewellery Manufacturers Association has appealed to the Union government to refund taxes paid by manufacturers on gold metal loans taken before the reduction of Customs Duty.

In a memorandum submitted to the Centre, the Association highlighted that jewellery manufacturers in Coimbatore purchase approximately 100 tonnes of gold annually. Those who obtained gold metal loans from authorised nodal agencies were subject to a Customs Duty of 15% and GST. However, the government recently reduced the Customs Duty to 6% in the latest budget. While the reduction in Customs Duty was a much-anticipated move, it resulted in a loss of ₹5.53 lakhs for every kilogram of gold for the manufacturers. The Association has called on the government to refund the additional duty paid.

The Association also urged the government to refund 3% of the interest paid on loans to MSME jewellery manufacturers at the end of the year. Additionally, it requested the establishment of a help desk in Coimbatore to promote jewellery exports and called for the renewal of gold metal loans for a period of 360 days.

Source: https://www.thehindu.com