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GST on gold deferred as consuming and producing states spar over rates

Council to address issue in June 3 meeting, as issue of tax on job work poses another challenge

Rajesh Bhayani  |  Mumbai 

The Goods and Services Tax (GST) Council deferred on Friday a decision to June 3 on the rate for gold, following unresolved differences between consuming and producing states.   The former wanted a two per cent GST on jewellery, while other states were okay with five per cent. The Council had proposed four per cent as a consensus but a decision could not be taken.   At present, one per cent is the effective excise duty, while valued added tax (VAT) is 1-1.25 per cent in most states. In Kerala, it is five per cent but under a composite scheme which most jewellers have ...

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GST on gold deferred as consuming and producing states spar over rates

Council to address issue in June 3 meeting, as issue of tax on job work poses another challenge

GST council today differed decision to 3 rd June meeting on which rate shall apply to gold following differences still persisting among consuming and producing states. Gold consuming states were insisting for 2 per cent GST on jewellery while other states were okay with five per cent tax. Council had proposed 4 per cent as consensus rate but ultimately decision could not be take.At present 1 per cent is effective excise duty while VAT is 1-1.25 per cent in most states. In Kerala it is 5 per cent but under composite scheme, which most jewelers have been opting for, effective rate is around 1.25 per cent. The Gem and Jewellery Federation of India- GJF- had proposed 1.25 per cent GST while Indian Bullion and Jewellers Association had proposed the rate of 2.25 per cent combining VAT and excise duty. Bullion industry is paying 10 per cent customs duty for imported old.However, in today's GST council meeting the issue of gold was to be finalized but apart from the rate differences, another . The Goods and Services Tax (GST) Council deferred on Friday a decision to June 3 on the rate for gold, following unresolved differences between consuming and producing states.   The former wanted a two per cent GST on jewellery, while other states were okay with five per cent. The Council had proposed four per cent as a consensus but a decision could not be taken.   At present, one per cent is the effective excise duty, while valued added tax (VAT) is 1-1.25 per cent in most states. In Kerala, it is five per cent but under a composite scheme which most jewellers have ... image
Business Standard
177 22

GST on gold deferred as consuming and producing states spar over rates

Council to address issue in June 3 meeting, as issue of tax on job work poses another challenge

The Goods and Services Tax (GST) Council deferred on Friday a decision to June 3 on the rate for gold, following unresolved differences between consuming and producing states.   The former wanted a two per cent GST on jewellery, while other states were okay with five per cent. The Council had proposed four per cent as a consensus but a decision could not be taken.   At present, one per cent is the effective excise duty, while valued added tax (VAT) is 1-1.25 per cent in most states. In Kerala, it is five per cent but under a composite scheme which most jewellers have ...

image
Business Standard
177 22