Gold prices steady ahead of GST launch, premiums see significant jump

The price of spot gold was fixed at $1,245.08 per ounce.

 Mumbai, June 30: With the Goods and Services Tax all set for their rollout from Thursday midnight, many items of domestic consumption are seeing a steady fluctuation in their prices as part of the anticipation of what a revised tax net would bring along. However, gold prices have remained steady.

The steady price was largely boosted by falling equity prices globally and a significant ease in the dollar. European markets even touched a nine-month low after a suggested easing in the region’s monetary policy. The price of gold in the United States also fell sharply and the rate stood at  $1,245.10 per ounce, a decrease of 0.1 per cent.

The price of spot gold was fixed at $1,245.08 per ounce. On the other hand, the price of gold premiums saw a sharp increase and stood at a seven and a half month high. This was largely because, in a bid to avoid paying a higher tax rate, customers rushed to purchase gold.

The GST slab for gold has been fixed at 3 per cent. While the price of premium stood at $1 an ounce last week, it increased to $ 10 an ounce this week. This is the highest premium price charged by dealers since November 2016. The tax rate on gold will see an increase after the GST comes into effect.

Currently, the Goods and Services Tax around the country stands at 2 per cent. this includes a 1 per cent tax as excise duty and 1 per cent as Value Added Tax. This is further compounded by import charges and the net tax could vary from state to state. In Kerala, a higher VAT of 5 per cent is charged on all gold products.