GST slashes down making charge on gold
Posted on: 13/Jun/2017 11:37:29 AM
The jewelry and diamond processing industry can now heave a sigh well ahead of the biggest tax reform that is to jump in on 1st July, as the Goods an Service Tax Council has planned to slash down making charge from the present 18 percent to as low as 5 percent.
About 133 representations are submitted to the GST. After assessing all these representations, the officers’ committee has shared recommendations. Out of these 133 cases, tax levels are reduced in 66 of them. Now, there will be 5 percent diamond processing and others, said Arun Jaitley, the Union Finance Minister while addressing a press conference.
It is to be noted that the All India Gem and Jewelry Federation, India Bullion and Jewelers Association and many other trade representatives had stressed to lessen tax imposed on jewelry making charges. Now, there is tax exemption imposed on jewelry making charges. Recently, 3 percent is fixed as the GST on precious metals and diamonds, as per the call taken by the GST Council meeting. Nevertheless, the jewelry making charge has tax of 18 percent.
This making charge tax will have its effect in increased tax for customers of the range 4 percent. This is double that of present charge which is towards 1 percent on VAT and excise.
