India’s GST (Goods and Services Tax) Council has fixed the rate tax on gold at 3%, to be implemented starting July 1, Art of Jewellery reports. The current tax stands at 2%. Meanwhile, the council decided to leave the current 10% tax on imports unchanged.
According to the report, “GST seeks to unify the entire country into a single market with only one value-added tax levy on all the goods and services across states at the point of consumption, subsuming up to 16 different taxes and levies that are imposed at present”. The new tax means that consumers will pay a total of 13% in taxes on gold jewelry. The 3% GST “will also apply to silver and processed diamonds”.
Finance Minister Arun Jaitley commented: “There was extensive debate on gold, and between 2% and 5%, there was almost a vertical division. A consensus has been reached at 3%”.
