GST On Gold Jewellery Making Reduced From 18% To 5%

Posted By:
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    The GST Council meet held on Sunday in the Capital among other items also reduced the GST for jewellery making charges from the decided 18% to 5%. The step shall reduce the pressure on jewellery buyers while at the same time render pricing mechanism in the industry more transparent. The new tax rate shall be applicable with the roll out of July 1.

    GST On Gold Jewellery Making Reduced From 18% To 5%

    The industry representatives including the All India Gem and Jewellery Federation and IBJA (Indian Bullion and Jewellers Association all made the request for reduction in the indirect tax rate on jewellery making charges. The charges fall anyway in the range of 10-12% of the cost of gold which is very high and a high tax implication only adds to the burden of the jewellery buyer.

    The decision has been welcomed by the industry tradesmen. Currently there is no tax implication on jewellery making charges and 1% each is applicable as VAT and excise. The higher tax slab rate of 18% as otherwise penciled would have increased the tax incidence for consumers by almost double.

    The step is likely to boost transparency with less burden on the end consumer with lower tax rate penciled for gold @3%. The World Gold Council expects a significant demand uptrend by the year 2020.

    GoodReturns.in

    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more