GST REDEFINING THE JEWELLERY BUSINESS
The Goods & Services Tax (GST), enacted w.e.f. July 1st 2017, has replaced majority of indirect taxes levied by the Central Government and State Governments like VAT, central excise duty, service tax, central sales tax, etc. However, basic customs duty leviable on imports shall still continue under GST regime. There is no doubt that the GST will redefine the jewellery business due to greater transparency and the new tax structure.
Levy and Rates under old laws vis-à-vis GST
The table on the next page summarises the levy and rates applicable in relation to different major types of transactions entered into by jewellers:
Basic Customs Duty (BCD) Integrated Goods and Service Tax (IGST) Countervailing Duty (CVD) Special Addition Duty (SAD)