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GST on making charges
Pls. advice what is the rate of GST on making charges paid by customer on purchase of jewelleries, assuming that the seller shows the making charges seperately in invoice ??
Replies (9)
GST rate as applicable on gold would be applicable on making charges as well, since it is composite supply. The principal supply is supply of gold.
sir I agree with u it's a composite supply. But the seller is declaring making charges seperately in the invoice which is liable for seperate rate of gst, somewhere it's showing 18% and somewhere 5%. just wanted to know which one is correct
They cannot charge separate rate on making charges, even if they show making charges separately in the invoice. They need to apply the tax rate as applicable to the gold.
yeah I agree with @ padmasri sir
that's a cost apart things
so it's added with cost
that's a cost apart things
so it's added with cost
Jeweller supply the jewellery only, not any service. Making charge is the manufacturing cost for the jewelly.
For GST purpose, service charges should not be shown seperately on invoice. Same rate of GST which is applicable on jewellery will be applicable on total value whether it is cost of gold or cost of making.
ok..thanks for the support !
Agree with everybody's views.
Final price of the jewellery = Price of (22 KT or 18 KT) gold X (Weight in grams) + Making charges + GST at 3% on (Price of jewellery + making charges)
Final price of the jewellery = Price of (22 KT or 18 KT) gold X (Weight in grams) + Making charges + GST at 3% on (Price of jewellery + making charges)
Dear Vinod,
What shall be the GST rate on making charges when the customer provides his gold and ask to convert it into jewellery? 5% or 18%?
What shall be the GST rate on making charges when the customer provides his gold and ask to convert it into jewellery? 5% or 18%?
rate of GST will be 5% if customer provides his gold and ask to convert it into jewellery.
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