GoM decides to levy 3% GST on sale of old gold
Posted on: 18/Aug/2020 12:57:43 PM
A panel of state finance ministers (GoM – Group of Ministers) on Friday veered around a proposal to levy 3 per cent GST on sale of old gold and jewellery to check tax evasion, Kerala Finance Minister Thomas Isaac said.
The panel also decided to make it mandatory for gold and jewellery shops to generate e-invoice for every purchase and sale transaction
Bihar Deputy Chief Minister Sushil Modi said the GoM reached a consensus on letting states decide whether to have an e-way bill for intra-state movement of gold
The panel also decided to make it mandatory for gold and jewellery shops to generate e-invoice for every purchase and sale transaction
Sushil Modi, who also holds the finance portfolio, said while Kerala and Karnataka wanted e-way bill for inter-state movement of goods, Gujarat and Bihar felt it was not practical and feasible.
The GoM (Group of Ministers), comprising finance ministers of Kerala, Bihar, Gujarat, Punjab, Karnataka and West Bengal, set up to examine the feasibility of implementation of e-way bill for movement of gold and precious stones met via video conferencing.
Isaac said the GoM arrived at a consensus on bringing the sale of old gold within the GST ambit under reverse charge mechanism (RCM). He further observed to PTI, “It was decided that sale of old gold will attract GST at 3 per cent under RCM. The officers` committee will now work on the modalities."
Isaac said this would put a check on tax evasion as currently, most of the smuggled gold is sold as old jewellery to evade GST.
