The Tax Reform will start from July 1. It came a news of relief for the jewellery processing industry as GST council revised the rate on making charge of Gold jewellery from 18 % to 5%.
Union Finance Minister Arun Jaitley in 16th GST meeting said,”The GST Council has received 133 representations. An officers’ committee made recommendations after studying these representations. The GST Council has reduced the tax levels in 66 out these 133 cases. The diamond processing and others would attract a levy of five per cent now”
Earlier the GST Council has set the making charges on jewellery at 18 % which would have been extra tax burden on consumers as compared to current tax system . The All India Gem and Jewellery Federation , India Bullion & Jewellers Association had asked for lowering down the making charges. Finally in the revised GST fixation, the making charges of Gold Jewellery was set at 5%.