Kalyan Wiki
Gst Effect On Gold Jewellery
GST (Goods and Services Tax) is an indirect tax levied on the supply of goods and services. Under GST, every tax is collected at the point of sale. The cascading effect of the previous tax laws has been removed by implementing GST.
What it means is that before GST, the final consumer paid tax on tax. While in GST, the value addition at each stage is identified, and the tax is levied on that. Further, it integrated the entire tax system in India and brought about a uniform rate and removed indirect tax barriers between states.
GST stands for a lower rate of tax with very few tax slabs. For the economy as a whole, it will reduce inflation, increase tax revenue for the government with an extended net tax. It will reduce the fiscal deficit and increase exports. Healthier economic indicators will, in turn, increase Foreign Direct Investments (FDI). Hence GST implementation is perceived as major tax reform in India.
A buyer of gold gold jewellery had to pay 1.2% of VAT, 1% excise duty and 10% of customs duty before the implementation of GST. After GST, there is a 3% tax on gold that is levied on 10% of import duty, which replaced the 1.2% VAT And 1% excise duty.
