New Delhi, Jun 5 (PTI) Jewellery stocks zoomed by up to Also Read - Japanese Women's Team Pulls out of Asian Wrestling

17 per cent today following the GST Council’s decision to tax Also Read - Depressed After Break Up, Man Tries to Open Delhi-Varanasi Flight's Emergency Door Mid-Air

gold and gold jewellery at 3 per cent. Also Read - Man Beaten & Forced to Chant Slogans For Alleged Theft, Attacker Arrested After Video Goes Viral

Shares of Titan Company shot up by 16.97 per cent, PC

Jeweller surged 9.38 per cent and Tribhovandas Bhimji Zaveri

gained 5.43 per cent on BSE.

Among others, Gitanjali Gems gained 3.36 per cent and

Thangamayil Jewellery rose by 1.79 per cent.

“Indirect tax rate for jewellery have been made slightly

higher at 3 per cent than exiting rate of around 2 per cent

but was lower than fears of 5 per cent rate. We believe that

this will not make too much of a difference to the category,”

Motilal Oswal Securities said in a report.

Gold will become slightly costlier as the current

incidence is 2 per cent and after “extensive debate” the

Council proposed to tax gold and gold jewellery at 3 per cent.

Finance Minister Arun Jaitley on Saturday said while some

states wanted a 2 per cent tax rate, others were in favour of

a 5 per cent tax on gold and hence the Council decided on a

“vertical division”.

“At present, gold is taxed at 2 to 2.5 per cent and this

marginal increase will not affect the players involved in the

industry (nor bullion dealers nor consumers) in a big way, nor

it will bring in prosperity to the government. This will help

bring standardisation of rates across the country,” said

Prathamesh Mallya, Chief Analyst- Non-Agri Commodities &

Currencies, Angel Broking.

This is published unedited from the PTI feed.