GST on gold set at 3 per cent : Media reports

NEW DELHI : The GST (Goods and Services Tax) Council on 03 June 2017 fixed the goods and services tax on commodities like gold, according to media reports. GST on most goods were finalised last month, the reports added. For gold, the GST has been set at 3 per cent introducing a new tax slab, fairly in line with industry expectations that was appealing for 2 per cent. Last month, the GST Council finalised a four-tier structure for taxation of both goods and services at 5, 12, 18 and 28 per cent, the media reports added.

According to sources quoted in the media reports, the proposal for gold was to put it in the 5 per cent slab. There was proposal keep the GST on gold between 2-5 per cent, Finance MInister Arun Jaitley was quoted in media reports as having said.

Currently, gold is taxed around 2 per cent (1 per cent excise and 1 per cent VAT or value-added tax). However, some states charge a higher VAT.

Diamonds will also attract 3 per cent GST, while rough diamonds will have a tax levy of 0.25 per cent. Gems and jewellery have been put in the 3 per cent bracket as well.

(C) A MEDIA INC./ THE INVESTORS INSIGHT / I N D I A/ 2017


NEWS BUREAU- 6/3/2017 8:25:05 PM


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