To boost up the metal & alloy industry, the government is soon going to come up with a comprehensive gold policy. Considering the gem and jewelry sector of India, government has planned to bring out a policy which could secure more jobs in the gold sector and could bring more business space in the sector. The policy will lay out its prime focus on increasing domestic production of gold products and increased exports of gold off the country.
In February, Finance Minister Arun Jaitley highlighted the export figures of the country adding in the contribution of Gems and Jewellery sector in it to be of 15 percent. He further announced to bring a well-projected policy for the economy to see the future of gold in an asset class for the country. Earlier, on recommendations of NITI Aayog government prompted to cut off the import duty on gold by 10 percent and also negotiated GST Council to slash GST on gold by 3 percent.
Besides this, the government has now also recommended for the festive season to review and re-consider the gold monetization, sovereign gold bond, and other gold exchange schemes.
A report to considering the present exports and scale of gold industry suggested allowing exemption of 3 percent IGST (Integrated Goods and Service Tax) which was paid by the exporter along with the imputed custom duties and legit bank guarantees.
The framework of policy with so recommendations of official authorities has been proposed by the GEMS and Jewellery Export Promotion Council (GJEOC). The council has called for statutory support of the government in terms of increasing incentives for making gold shipment more lenient under the Merchandise Export from India Scheme (MEIS).
Under MEIS, government activities to give obligation free advantages and impetuses on fares dependent on the item and nation sent out. Certain prizes are given under the plan as a level of acknowledged free on board esteem and the MEIS obligation advantage or credit scrip which further can be exchanged or can be used for installment for various obligations including installment of fundamental traditions obligation.