GST rate
Pournima Bhandari (32 Points)
26 May 2017
GST rate applicable on equipment of mobile and jewellery business..?
ALOK RANJAN
(ACCOUNTS OFFICER)
(128 Points)
Replied 26 May 2017
MUMBAI: Most states demanded a 5% goods and services tax (GST) on gold, silver and diamond in the GST Council meet but this did not find favour with ornament making hubs such as Maharashtra, Gujarat and Tamil Nadu, leading to the rate fitment for this class being deferred to June 3.
“A 5% rate was agreed upon by most states but Maharashtra, Gujarat and Tamil Nadu wanted a lower tax,” said Thomas Isaac, Kerala’s finance minister, who has argued for a higher rate. “This means more discussions are in order before a decision next month.” Isaac said that there would be a single GST rate across the value chain and no tax on making charges. A jewellery maker would be able to avail of input credit.
For instance, if he paid 5% tax on Rs 100 to a bullion dealer, the total cost would be Rs 105.
If he made ornaments from this bullion worth Rs 110, inclusive of GST, the cost to consumer would be Rs 115.5. However, since he paid 5% on bullion, he would have to deposit just 50 paise with the government. The All India Gems & Jewellery Federation (GJF) has been pitching for a 1.25% GST on jewellery. Isaac estimates that Rs 10,000 crore would accrue by way of 5% GST on these goods.
“In the past two decade, the gold price has moved up by almost five times. Nobody complained about this and here you have a 5% levy and such a hullabaloo, which is hard to digest,” said Isaac.
Source : Internet
ALOK RANJAN
(ACCOUNTS OFFICER)
(128 Points)
Replied 05 June 2017
Gold, silver, precious metals & ornaments GST Rate :3%
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