MCX February 5 expiry contract witnessed a sudden, intraday fall of 0.85 per cent, or Rs 271, to Rs 31,300 per 10 gm. The gold import duty is 10 per cent.
The GST on gold is 3 per cent, setting the effective tax at 13 per cent. The discounts have narrowed since Monday, when the rumours first surfaced, pointing to a likely return to normality in the markets.
The futures closed at Rs 175/10 gm discount to the spot rate polled by MCX on Monday.
The discount narrowed to Rs 109, and on Wednesday late evening, it was Rs 145. Bullion dealer Ganpat Mehta of Mehta Bullion at Zaveri Bazaar said the import duty was unlikely to be changed, and the gold futures would soon begin quoting at a premium to the spot price.
