GST ON MAKING CHARGES OF GOLD JEWELLERY

Reverse Charges Mechanism (RCM) Not Applicable on MAKING CHARGES to local unregistered goldsmiths. In this case, you are not liable to pay RCM GST on Making Charges Payment to Unregistered Dealer. 

 

∆ If Jeweler Charges Making Charges Separately

Value of gold – 3%
Making Charges – 18%

∆ If Jeweler not charging making charges separately

As per section 2(30) and section 8 of CGST Act , Provision of Composite Supply shall apply

 And on total value of Invoice 3% GST shall be charged .

Agree with Vinod Sir....
But I think, the rate of GST in Gold Making Charges should be 5% instead of 18%. Initially the GST Council decided to put it on 18% Tax bracket but on 12 June 2017 meeting it was put under 5% tax bracket w.e.f 1/07/2017..

Yes you are right sir.
now gold has a making charge of 5%. GST council had earlier decided 18% for gold making charges.
The tax on the making charge was then reduced to 5% due to concerns raised by various groups.

Dear Vinod & Shivam,

Can you share the notification no where it xx mention that GST on making charges of gold jewellery is 5%.

In notification no 11 CT(R) dt 28/06/2017 GST rate 5% is for JOB WORK service.
As per section 2(68) of the CGST Act, says that goods belong to REGISTER PERSON.

So as per my understanding GST rate on making charges to the customer shall be 18% and not 5% as customer being unregistered due to which such transaction doesn't falls under job work!

Sir one of my client are giving their stock to goldsmith and whole stock will be taken back, till that agreed to receive Rs.75 per gram on every month, what is the GST rate to be charged on this income