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GST: Advantage for Uttarakhand's bullion refineries

The incidence of tax on them will be lower by 78 basis points in the GST regime

Rajesh Bhayani  |  Mumbai 

GST, tax

refineries in the zone of will be in an advantageous position in comparison to those in other areas of the country (domestic tariff area) in the goods and services tax (GST) regime. 

The incidence of tax on them will be lower by 78 basis points in the regime. 

Rudrapur in houses 17-18 refineries, which work on doré bullion, or unrefined imported gold. There are about 37 such refineries in the country, the rest of them are in the domestic tariff area. 
Currently, refineries in zones pay a (CVD) of 8.75 per cent and 0.2 per cent entry tax, making the total 8.95 per cent. Compared to that, the domestic tariff area refineries pay a CVD of 9.35 per cent. 

Now under the GST, which will be three per cent for both types of refineries, Uttarakhand-based refineries will get 52 per cent of the central component, which is half of the three per cent GST, as refund. 

This means their net will be 2.22 per cent, while other refineries will pay three per cent.  


First Published: Wed, June 21 2017. 01:20 IST
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