GST council meeting to be held on 3rd June is going to have tax on gold as its crucial topic. Apart from this, the meeting will have gems, jewelry, textiles, cigarette, footwear and farm equipment in its discussion list. Though the jewelers in states have their own views, but this will only get finalized after the council meeting whether the gold will be cheaper or costlier.

“This meeting is important because it is likely to finalize the rates of tax and cess to be levied on the commodities remaining… Approval of amendments to the draft GST rules and related forms are also on the agenda among others,” a Finance Ministry statement said.

What are the views?

1. Bengal and Kerala want the tax to be 2%
2. Other states want the tax to be 5%
3. Gems And Jewelry Federation hopes the tax to be 2.25% because gold is a luxurious item
4. People who want the tax to be less have reasons that higher tax will cause high smuggling problems.

What are sarafa businessmen looking for?

The businessmen want the gold and other jewelry to have special 2% GST. The reason behind it is that they believe this will balance the transparency and increase the revenue. They also believe that if the GST will go up to 5% it will result in avoidation of tax as the customers will ask not to provide a bill.

The meeting will decide, gold will be cheaper or costlier

The current VAT on gold is 1% and 1% is the product fee. If 10% limit fee can be more added, it is 12% tax. If the GST council will increase the tax from 12% and make it 18%, the gold is going to be really costly.

Tags: Gems And Jewelry Federationgold taxGSTjewelry tax