Thursday, October 19, 2017

GST Council cuts tax rate on gold jewellery making charges to 5 per cent
Wednesday, June 14, 2017 - 3:08:33 PM - By News Bureau
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GST Council cuts tax rate on gold jewellery making charges to 5 per cent
MUMBAI : The Goods and Service Tax (GST) Council reduced the applicable rate on jewellery making charges from 18 per cent to just 5 per cent. This has come as a huge relief for the jewellery and diamond processing industry, as India's biggest tax reform is all set to be implemented from July 1, 2017.


Media reports said the GST Council had received 133 representations. An officers' committee made recommendations after studying these representations.

"The GST Council reduced the tax levels in 66 out these 133 cases. The diamond processing and others would attract a levy of five per cent now," Union Finance Minister Arun Jaitley was quoted in media reports as having said. He was addressing a press conference after the 16th GST Council meeting.

Earlier, All India Gem and Jewellery Federation, the India Bullion and Jewellers Association (IBJA), and other trade representatives had made representations for lower taxes on jewellery making charges.

Currently, tax is exempted on jewellery making charges. Early this month, the GST Council meeting had fixed GST on precious metals and diamonds, including jewellery, at 3 per cent. However, tax on making charges of jewellery was kept at 18 per cent.

Tax on making charges would have in turn raised tax for consumers to over 4 per cent, almost double of what is currently charged in the form of 1 per cent each on VAT and excise on jewellery.

Reduction in the applicable rate on jewellery making charges from 18 per cent to just 5 per cent will be a relief for the jewellery and diamond processing industry.

(C) A MEDIA INC/ THE INVESTORS INSIGHT/ I N D I A / 2017
GST Council
cuts
tax rate
gold
jewellery making charges
5 per cent
Union Finance Minister Arun Jaitley