The All India Gems and Jewellery Council (GJC) says a recent increase in gold import duty will make business difficult for the jewellery sector and may encourage grey-market activity. The GJC, quoting its chairman Rajesh Rokde, links the impact to current policy changes and describes a risk that higher costs for imported bullion could lead to smuggling and a parallel market for gold.
According to the GJC, the gold import duty has been raised to 15% from 4% earlier. The council says the revised duty structure—combined across Customs Duty, GST and Agricultural Cess—will raise the price of gold by about Rs 27,000 per 10 grams, compared with about Rs 13,500 per 10 grams under the previous structure.
The GJC also states it has called an all-associations meeting in Mumbai to discuss the policy decisions and determine potential next steps. The Hindu and Business Standard report the same core concern from the council: that higher duty can raise retail and wholesale costs, while also increasing incentives for illegal or informal sourcing.
