In a major good news for jewellers and customers, the government on Tuesday decided to roll back its decision to apply one percent tax on cash purchase of gold jewellery.
Earlier, the jewellers had been on a 45-day strike after Finance Minister Arun Jaitley had proposed 1 percent excise tax on gold jewellery in his Budget speech in February.
According to reports, the decision is likely to boost the demand for gold jewellery in Asia’s third largest economy.
Earlier on Monday, the government revised its decision to impose 1 percent tax on cash purchase of gold jewellery of upto Rs. 2 lakh and above and raised the limit to the earlier Rs. 5 lakh from June 1.