Finance Ministry favours GST on gold at 3%

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To maintain viability of the gold bond scheme, the Finance Ministry as reported in one is Business dailies is considering a GST rate of 3% on gold and is not interested to lower down import duty on gold anytime soon. The industry however sought 4% cut in the import duty on gold. Nonetheless, the final say to fix GST on gold lies in the hands of the PMO.

Finance Ministry favours GST on gold at 3%

With no clarity in respect of the applicable GST rates on gold jewellery, jewelers had long been in a fix. Some gold jewelers consider making charges as a service and hence show them separately while billing. So as under the draft GST guideline, a rate of 18% is applicable. Some other jewelers account for making charges in the total value of gold, so as under GST the rate of 2% applies.

GST set to be rolled out in July this year aims to curb the compounding effect such that the final tax rate on goods shall fall under either of the 4 tax rate categories; 5%,12%, 18% and 28%. In a report, a Commerce Ministry official is quoted saying "We are mulling a new comprehensive gold policy to bring domestic and foreign gold trade rules under one roof."

Read more about: gold, gst, import duty
Story first published: Tuesday, April 25, 2017, 15:28 [IST]
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