3% GST on gold: The yellow metal will continue to shine; jewellers rejoice

The industry, however, needs clarity on standardised billing procedure for selling gold jewellery

Jewellers across the country are happy with the three per cent rate fixed on gold jewellery under the Goods and Services Tax (GST). The Centre has definitely considered the demand of the gold industry while fixing the rates.

Currently, gold jewellers pay one per cent excise and 1.2 per cent value-added tax (VAT) over and above the 10 per cent customs duty on bullion. This effectively works out to 12.43 per cent. With the introduction of GST at three per cent for gold and 18 per cent for making charges, and keeping customs at 10 per cent, the effective rate