New Delhi, June 9 (KNN) With the GST roll out around the corner, the World Gold Council has raised concerns over the short term impact GST might have on the SMEs in the gold industry.

The World Gold Council recently released a report titled “GST's impact on India’s gold market". While the report acknowledges the GST as a good thing for the economy at large in the long run, it is skeptical about the initial implementation and its impact on the Small-scale artisans and retailers.

The report said that the Small-scale artisans and retailers with varying degree of tax compliance may struggle initially to adapt to the change in tax regime.

It further said that the impact of GST on gold industry might prove to be disruptive for the short-term. Citing the consumer behavior as a reason for this, the report further predicted optimistically that things might get better in the long run.

The report commented that the data with the council predicts that higher taxes prove to be headwind to gold demand. It further said that the tax might change the industry to the benefit of the consumer.

The GST council during the last meeting finalized three per cent tax on gold as opposed to the present 2.2 per cent of excise duty and VAT that is being charged. (KNN/ DA)