If the reaction of the gold companies on the day after the GST announcement was any indication, then the markets have surely received the news positively. Jewellery companies like Titan, PC Jewellers and Renaissance Jewellery were up sharply in stock market trades. What exactly does this rate of GST mean for gold and jewellery companies in India? The overall difference of 0.5% tax on gold is likely to be insignificant. There is a reason for the listed jewellery companies to be impressed by the GST rates. The GST, by default, is based on the principle of broader compliance and hence is likely to take away the advantages of the unorganized sector. That could be a challenging situation as the unorganized segment accounts for nearly 90% of the gold making in India. That means the organized jewellers that are listed like Titan, Thangamayil, PC Jewellers etc are likely to benefit from greater organization of the sector.