GST will Help Curb Illegal Gold Trading

If the note-ban helped in identifying black money hoarders and corrupt businessmen and politicians, then GST is going make an even bigger impact in the same arena.

Once GST is implemented, no retail outlet will be able to buy goods from the wholesalers without a proper bill. This is because they can’t claim Input Credit without it. Since the gold market in India has grown into a massive goldmine of black money, the GST bill will also help to put an end to that.

For many years now, the jewelers have been buying gold from gray markets where they get high discounts. Every year more than 100 tons of gold are being smuggled. However, with GST implementation buying gold illegally will make no sense as the custom duty will drop to 2% from 10%. Plus, the sellers won’t be able to hide their transactions due to the transparent GST monitoring.