Titan, Gitanjali Gems, PC Jeweller Surge On GST Boost
Shares of jewellery retailers such as Titan Company, PC Jeweller, Gitanjali Gems and Tara Jewels surged between 6 per cent and 15 per cent on Monday as the Goods and Services Tax or GST Council over the weekend fixed a tax rate of 3 per cent on gold and gold jewellery under the new indirect tax regime. The move by the Council, chaired by Finance Minister Arun Jaitley and comprising his state counterparts, was welcomed by the gems and jewellery industry.
"Currently, the industry pays taxes around 2 to 2.5 percent, so 3 percent is almost as good as no impact," Aditya Pethe, a director at WHP Jewellers said. "With this taxation, many unorganised players will be encouraged to enter organised trade."
Somasundaram PR, managing director, India, World Gold Council, said in a statement government's decision on gold was an encouraging step and would help stabilise an industry in which millions are employed.
"This is a landmark day for the jewellery sector as the government rightly kept the overall tax burden low in the industry, keeping in mind the unique characteristics of the gems and jewellery sector, the 'kaarigars' and small jewellers," All India Gems and Jewellery Trade Federation (GJF) chairman Nitin Khandelwal said in a statement.
He said this GST rate would help the gold and jewellery trade and it would mature as an organised sector in the years to come.
The GST Council in its previous meeting last month had fixed over 1,200 goods and 500 services in the tax bracket of 5, 12, 18 and 28 per cent.
Among shares of other jewellery makers, PC Jeweller jumped over 8 per cent to Rs 548.85, shares of Gitanjali Gems and Tara Jewels gained over 8 per cent each. In comparison, the Nifty traded flat in early trade.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
