GST rate on jewellery making charges cut to 5% from 18%; stocks jump up to 3%
The jewellery industry got much-awaited relief from the Goods and Services Tax (GST) Council on Sunday, which in its 16th meeting reduced the applicable tax rate on jewellery making charges from 18 per cent decided earlier to 5 per cent. This sharp cut in the making charges has been welcomed by the jewellery sector.
GST Council’s earlier decision of 18 per cent tax on jewellery making charges had the jewellery manufacturers worried as almost all of the jewellery sold in India involves making charges, and the higher tax incidence would have hurt the jewellery industry.
“The GST Council has received 133 representations. An officers’ committee made recommendations after studying these representations. Thus, the GST Council has reduced the tax levels in 66 out of 133 cases…The diamond processing and others would attract a levy of five per cent now,” said Union Finance Minister Arun Jaitley, after the 16th GST council meeting on Sunday.
Courtesy: Financial Express