18% effective gold import tax threatens grey-market surge as organized share hits 36%
World Gold Council flags 18% combined tax burden (10% BCD + 5% cess + 3% GST) risks reviving grey channels despite organized retail quadrupling share from 9% to 36% in five years. Blockchain-led 'Gold as a Service' model emerges as structural reshape for India's 350,000 jewelers.
What happened
World Gold Council · Effective 18% gold import tax burden risks widening grey-market activity even as organized jewelry retail share jumped from 9% to 36% in
Key facts
- 18% total tax
- 10% basic customs duty
- 5% cess
- 3% GST
- 350,000 jewelers
- organized share 9% to 36%
- wedding demand 58%-62%
Why this matters
Fragmentation across 350,000 jewelers plus emerging blockchain platforms creates a rare window to roll up regional players or acquire GaaS tech stacks before tax normalization triggers consolidation premiums.