The diamonds and gold industry contributes substantially to the Indian GDP, around 7.5% to be precise. Around 14% of the total exports of the country. This industry employs over 50 lakh workers.
The government introduced GST on 1 July 2017 we are currently in the 4 years of this time. Everybody still seems to the figuring out its impact on various sectors, especially in the hand of small and medium business owners. In this post, we try to decode the GST on the diamond jewelry and gold jewelry industry.
The latest GST rates on diamonds and gold jewelry –
Under the GST tax rates can be complicated to decipher. We aim to overcome this by explaining the GST rates representation below. It is pertinent to understand this before we get into the GST on diamond jewelry and gold jewelry.
Particular type of goods /services oher
1. Artificial stone (not in dimonds) and semi precious stone, not worked or graded but not strung , mounted or set, loose stone
2. Ungraded precious stones not in dimonds and semi precious stones temporarily strung for convenience of transport (add synthetic or reconstructed stones, a part from unworked or simply sawn or roughly shaped
Diamonds, gold, pearls, silver, or artificial jewellery of silver and gold and including synthetic or reconstructed stones, unworked or simply sawn .
Job work in relation to cut and polished diamonds, plain or studded jewellery of gold, silver and etc
Making charges on diamonds and gold jewellery
Government raises GST on cut and polished diamonds to 1.5%
The Goods and Services Tax Council has decided to raise the GST rate on cut and polished diamonds from .25% to 1.5% and the new rate will be implemented from July 18. 2022
The Gst council held its 47th meeting from June 28 to 29 and addressed and revised the GST rates on a number of product categories, GST rates on cut and polished diamonds have been welcomed by the Indian jewelry industry because it resolves the issue of input tax credit which was being faced bye business due to the inverted duty structure.