Taxes on gold are not part of the four-tier GST structureEarlier, the finance ministry had divulged that GST tax slabs would fall at 5%, 12%, 18% and 28%, but the tax on jewellery and bullion does not fall under any of these slabs. This is because the state-levied tax on gold jewellery varies widely across India. The South Indian states alone account for about 40-60% of gold consumption in India. Kerala has a VAT of 5% on gold jewellery with taxes from gold amounting up to Rs. 400 crores annually, while Tamil Nadu – even with its low VAT rate – collects about 100 crores from gold tax alone. Mr Isaac, who holds significant clout in the GST council of state ministers, said that he would want a tax rate of 4% for gold so that the state does not see any shortfalls in revenue generation in the coming years. The final word on this will now be known only after the meeting of the GST council on 18th February.
Getting GST-ready. What you can do…While the experts debate on the dos and don’ts of GST, you need to ensure that your business is GST-compliant before the deadline arrives. Here are some things you need to keep in mind:
- Get your enrollment done on time. To read more about the enrollment process and its relevance, Click here.
- Plan your logistics and warehousing requirement carefully. To read our detailed guide on impact analysis on logistics and warehousing, Click here.
- Adopt such platforms, technologies which will enable your business to be GST-compliant. Click here to get all updates and access a pool of GST Calculators.