Proposed Comprehensive Gold Policy in Focus at India International Gold Convention

Gold Convention

The 14th edition of the India International Gold Convention 2017 (IIGC), which was held in Goa from August 11-13, 2017, discussed the proposed comprehensive gold policy that is under consideration by the government, among other issues, according to a statement issued by the India Bullion and Jewellers Association (IBJA), one of the organisers.

The gold policy is being given shape by the Ministry of Finance along with Ministry of Commerce, Ministry of Consumer Affairs, Reserve Bank of India (RBI) and other stakeholders. According to IBJA, Shri Manoj Dwivedi, JS, MoC&I has agreed to their suggestion to convene industry consultation meetings twice a month, where the trade bodies and other concerned organizations can work together to present their suggestions periodically.

Some of the other key recommendations from the conference include setting up of a gold spot exchange which would lend credibility, provide liquidity, ensure compliance with KYC norms and reach out to exporters in remote locations, and the finalizing of good delivery guidelines, with technical and sourcing parameters that are on par with LBMA standards and others adapted to suit local needs and market developments. It also called for permission for nominated banks and financial institutions dealing in gold to hedge their risks in the commodity derivatives market. IBJA also asked for modifications in the requirement to upload E-way bills, keeping in mind safety issues.

The conference has also asked the government to consider imposing a GST on gold imported with concessional customs duty under FTA schemes and also reduction of customs duties in such a manner that the net tax impact becomes equal for goods imported into the country both from non-FTA and FTA countries. It also asked for modifications to the GST refund mechanism due to exporters to ensure there is no locking up of capital and to increase competitiveness in the global markets.

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