The government has decided to reduce the tax slab for gold to 3% from 10%, which will make it one of the most lucrative commodities in the country. It is expected that this move would bring about development in the jewelry industry and encourage people to invest in fresh gold jewellery.
Latest Update in GST Impact on Gold Industry
Indian Bullion Jewellers Association Director Tanya Rastogi thinks the proposed move by the Indian government to hike in GST rate on gold jewellery is likely to disturb the industry, which has been struggling due to the covid lockdowns and non-responsiveness of customers. “We don’t want this ill-gotten gain (of high taxes) as you can imagine that all these facilities have just come into view, people are visiting from outside or from other states in search of better facilities and we have no control over it,” she said.
GST implementation is going to have a positive impact on gold prices in India. In fact, the sector is up around 26 percent since its all-time low from February when it fell down below Rs 21,000 per 10 gm.
The government has made a major decision which is expected to boost the Indian economy. According to the reports, which were published by Economic Times and Business Standard, it is said that the GST council has decided that there will be no service tax on gold dealers. Currently this industry is being taxed at 5 percent and it might be reduced down further to 2.5 percent or 1 percent.
Overall, the standard bill system is a regulated process that enables all the players in the industry to work consistently and remain transparent in their actions. There are many benefits of implementing this system, but most importantly it helps to get rid of ambiguities when dealing with suppliers and customers.
Overall, the standard bill system is a regulated process that enables all the players in the industry to work consistently and remain transparent in their actions. There are many benefits of implementing this system, but most importantly it helps to get rid of ambiguities when dealing with suppliers and customers.
Gold will not be taxed under GST as the demand for gold has surged in India in the recent quarter. It was reported that gold was received from all over the world and other countries put a ban on import of Indian gold. As it is said, there are some attractive rates for the gold buyers who want to buy gold at a price of 33090 crores which can be purchased under GST rate of 3 percent.
GoM Decides to Levy 3% GST on Old Gold & Jewellery
Earlier, The group of ministers have decided to charge the tax on old gold and other jewellery so as to ensure that there is no tax evasion by the smugglers. However states like Gujarat were against but others were in favor of the same decision. So far none has been proved about the exact decision taken by the central government in this matter. >>>Read More<<<
