The gems and jewellery industry on Saturday welcomed the Centre’s decision to keep the goods and services tax rates (GST) for gold at 3 per cent, which is almost in the same range being levied by most of the states at present. While most of the states have been levying between 2-2.5 per cent tax on gold purchase, Kerala is the only state which has a tax rate of 5 per cent.
“This is a landmark day for the jewellery sector as the Government rightly kept the overall tax burden low in the industry, keeping in mind the unique characteristics of the gems and jewellery sector, the 'kaarigars' and small jewellers,” All India Gems and Jewellery Trade Federation (GJF) Chairman Nitin Khandelwal said in a statement.
He said this GST rate would help the gold and jewellery trade and it would mature as an organised sector in the years to come. “In fact, this move will encourage the industry to become more organised and transparent,” Khandelwal said.