KOCHI: With the the GST rates for gold yet to be fixed, the new rates would be disruptive for the sector, once announced.P R Somasundaram, Managing Director, India, World Gold Council (WGC) said that it would take take 12 to 18 months for the industry to adjust to the new system and a lower rate under GST will bring more people into the organised segment.
The total gold holdings with private households and individuals in India is around 22,500 tonnes.
“Our broad estimate is that temples in India may hold between 2000 to 4000 tonnes of gold. Of which 1000 tonnes might have been accrued before 1968, which means between 1000 tonnes and 3000 tonnes was given to religious institutions by private individuals,” he further said.
‘India’s gold market: evolution and innovation’ report stated that South India accounts for 40 per cent of the demand in gold jewellery followed by West (25 per cent), North (20 per cent) and East (15 per cent). The country has about four lakh outlets.