Gold sales fall, shopkeepers fear dark Diwali season
By Aniruddha Ghosh
Bangalore, Oct 12, 2017:Gold stores across Bangalore are reporting a decline in sales this Diwali season, and they are attributing it to the Goods and Services Tax (GST).
This slump in sales is visible in both luxury jewellers and jewellers who cater to the middle-income bracket.
“We are seeing a 30-40 percent decrease this year, and I’m not expecting it to change as Diwali nears,” said Geetamani, manager at the luxury jeweller store, Ganjam.
Preeti Singh, a resident of Whitefield and customer at Ganjam, said, she is planning to cut down on buying gold this year.
The GST on gold is three per cent compared to the one per cent Value Added Tax (VAT) in the earlier regime.
Tarun Thyagaraj, manager at Tanishq, Kormangala branch, said that he hasn’t met his sales target and has low expectations for this Diwali season.
Geeta Shree, manager at Amrapali Fine Jewelers on K.G Road said “The price of gold has increased lately but the rise is too minuscule to affect sales, therefore GST is to be blamed for the decline.” Her store is suffering a 30-40 per cent loss. She further said that they have to offer discounts and offers so as to not lose their customers.
The price of gold in September fluctuated between Rs. 2,970-2,990 and reached a high of Rs. 3,020 on the 6th of last month. While this month, the prices have dropped to Rs. 2,950-2,960 range.
Basvaraju, Marketing Manager at Senco Gold, Koramangala blamed the GST for the 35 per cent decrease in his store’s sales. He added that besides the increase in price, the requirement to submit Aadhar Card or PAN card for purchases above Rs. 50,000 is discouraging customers.
Venkatesan, manager at Khazana Jewelers at Koramangala said that his store has seen a decrease in sales by 30 per cent. He added, “While a slump in sales after GST was obvious, we expected it to rise before Diwali but that hasn’t happened.”
Nupur and Sreenath, who were shopping for gold at Senco said, “Many of our friends and family are unwilling to buy gold this year and we will also not invest much in it.”
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