Stark anxieties hold back state gold trade
“Delay in printing punching Unique identification affecting retail sales”, say traders
The decision to make hallmarking of gold ornaments mandatory from July 1 put the ornamental retail trade in the state at risk. While sellers of gold ornaments have praised the government’s decision to ensure that customers buy pure gold and also receive the best price for the gold in their possession, the mandatory printing order of The unique identification of the hallmark on gold ornaments caused a serious downturn in business. said S. Abdul Nassar, State Treasurer of the Kerala Gold and Silver Merchants Association.
He said the state’s retail gold trade is worth between 40,000 and 50,000 crore a year and directly and indirectly employs around 10 lakh of people. There were around 7,000 registered gold and silver ornament sellers in Kerala and around 5,000 who operated without registration. Small retailers, whose turnover was 40 lakh per year or less, do not need to register under the current GST rules.
The punching facilities available in the state are unable to meet the requirements of the gold ornament retail business. The alpha numeric number can be used to trace the origin of the ornaments, but the servers providing the numbers are unable to handle the workload. There have also been instances where the same adornments got different punch numbers even as the slowdown of the server operated by the service provider continued.
K. Surendran, secretary general of the Kerala Gold and Silver Merchants Association, said punching centers that previously produced thousands of units of ornaments were unable to provide unique identification numbers. for even fewer numbers. There are approximately 73 punching centers in the state, and retailers have faced delays of up to three days in punching the parts. The delay was a big drag on sales, especially as most small retail buyers addressed immediate needs.
The gold sellers alleged that the unique identification number process was not very beneficial to buyers but a bureaucratic request.
Retailers also claim that the decision to implement the unique identification punching system was taken in haste and without adequate preparation.
The traders also demanded that the application of the provisions of Article 29 of the BIS be now suspended and that the confiscations of ornaments be stopped.