Gold & Silver Merchants demand GST cut to 1% for gold ornaments

Mon Aug 11 2025

When the GST was implemented, gold price was ₹20,000 per piece and is now hovering above ₹75,000. The huge increase in the price of gold has made it a big burden for consumers to have to pay a tax of ₹2,500 to purchase gold ornaments.

The All Kerala Gold & Silver Merchants Association has reiterated its demand to reduce GST on gold ornaments to 1 per cent.

The State Council camp highlighted various issues faced by gold merchants in Kerala. The council also decided to approach the Central and Kerala governments to bring the issues to their attention.

K.Surendran, state president of the association pointed out that those buying gold for wedding are facing the most difficulties. Ordinary people who purchase 10 and 20 sovereigns of gold ornaments for their wedding requirements could not afford to pay taxes to the tune of ₹25000 and ₹50,000. Many consumers have raised concern that their wedding budgets are completely out of sync in view of the rising prices of gold.

He said that the purchasing power of those buying gold for weddings are declining in view of the price rise and increase in tax burden.

Source: https://www.thehindubusinessline.com/