Do you have gold or planning to purchase gold?
Do a have a function in your home and planning to purchase a high amount of gold?
Do you want to purchase and invest in gold?
So if you these types of questions in your mind then you have come to the right place. By reading the whole blog, you will rectify your problems and get more knowledge about the Good and Services Tax on the Gold Jewelry. Hereby reading the article you would know the impacts of Goods and Services tax over the price rates of the gold jewelry.
India is a country where all the cultures and traditions are followed. Once a time, India was known to be a golden bird due to the fabulous riches of gold.
Women of India likes to wear golden accessories during the traditions and festivals to look beautiful. Most of the Indian people purchase gold during the festive seasons such as Deepavali, Dhateras, etc.
The GST Registration is a must for all the Indian entrepreneurs to make your business legally authorized.
To get more benefits from the Goods and Services Tax the jewelers should apply for the GST Registration in India, as it helps the people to earn more and get more profit.
As the gold also generates more economy, it comes under the Goods and Services Tax. After the regime of GST, the prices have decreased as the cascading effect is not applied to the tax.
How was the gold pricing was done in Value Added Tax(VAT)
Before the Goods and Services Tax, the tax system applied to the gold was VAT. Hence the customer had to pay Value Added Tax of 1.2% on solid gold or gold jewelry.
Adding to that a customer also should have to pay 1% of excise duty and basic customs duty of 10% on each of the products of gold.
As there was no fair tax policy like Good and Services Tax at that time, most of the gold jewelers were probably indulged in the black marketing of gold to earn more money.
GST rates on gold
The Goods and Services Tax applied to the gold is about 3% and the basic customs duty of 10% duty is also levied. Hence the price rate of gold has increased by about 0.75% and the demand for gold jewelry is reduced due to applied tax on the gold. But from before the prices of the gold have become simpler to understand. There is no difference in the price rates but he excise duty of 1% is removed in the Goods and Services Tax. But here the gold jewelers would get more benefits from the customers.
Both the customers and the gold jewelers would get benefited from this article.
Benefits of Goods and Services Tax for the Gold Jewelers
The earning of the Gold Jewelers have been increased and the manufacturing cost is decreased.
The Input Tax Credit can be availed by the Gold Jewelers on the gold jewelry.
The goldsmiths made most of the gold jewelry for the jewelers hence the jewelers can attract 5% of Goods and Services Tax.
