jewelery

Cabinet approved making hallmarking of jewellery mandatory
 As a step to maintain the quality of gold jewellery, the Union Cabinet has approved making hall marking of gold
jewellery mandatory. India is the world’s biggest consumer of gold.
 This was done by approving amendments to the Bureau of Indian Standards (BIS) Act, 1986, which aims to
expand the ambit of compulsory hallmarking to add more products.
 At present, gold hallmarking is voluntary.
 Jewellery accounts for around 65% of gold demand in India.






Jewellers body seeks abolition of gold ETFs
Current Affairs Published on www.gktoday.in from January 1, 2012 to
September 10, 2012
National jewellers body All India Gems and Jewellery Trade Federation (GJF) has recommended abolition of gold
Exchange Traded Funds (ETFs) in order to prevent the shift from buying the precious metal from jewellers. They
suggested abolishing gold ETF investment in the country which is completely an idle investment. GJF also
recommended introducing 25% commodity
transaction tax (CTT) on ETFs.
Gold ETFs are Exchange Traded Funds of Gold and a
person can hold units of gold in demat form in more
cost effective manner. The funds also offer liquidity
on stock exchanges.
GJF held that earlier investment in gold was done in
the form of jewellery and jewellers have lost
business by 30-50% since October, 2011. As per GJF,
25-30% of gold imports are being diverted to gold
ETF investment. In 2011, the import was pegged at
969 tonne. GJF in its Budget suggestion demanded
for an increase in the limit of gold buying to Rs 25
lakh from the current Rs 5 lakh which would necessitate rendering of the PAN card. The federation, though, expressed
contentment on the Government’s explanation on imposition of excise duty on branded jewellery.


surat----city of india which process the world's 90% small diamonds processed



Import & Excise Duty on Gold, Silver & Diamond pegged to value
 The Government issues an important notification, which would cause the prices of Gold & Silver go up.
 With this notification, the import duty on gold has been fixed at 2 per cent of the value, instead of the earlier rate
of Rs. 300 per 10 grams.
 On silver, the import duty has been pegged at 6 per cent, as against Rs. 1,500 per kilogram earlier.
 Diamonds will attract an import duty of 2 per cent.
 Excise duty on gold has been fixed at 1.5 per cent of the value, as against the earlier fixed rate of Rs. 200 per 10
grams.
 Excise duty on silver is 4 per cent, as compared to a fixed duty earlier of Rs. 1,000 per kilogram.
 The ad-valorem rates of excise and customs on gold, silver and platinum have come into effect from January 16,
2012.
 The change will help government to get additional Rs. 600 Crore during the remaining months of fiscal 2011-12.