GST RE­DEFIN­ING THE JEW­ELLERY BUSI­NESS

Solitaire - - IN FOCUS - By Dr. Suresh Su­rana

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:

Glos­sary

Ba­sic Cus­toms Duty (BCD) In­te­grated Goods and Ser­vice Tax (IGST) Coun­ter­vail­ing Duty (CVD) Spe­cial Ad­di­tion Duty (SAD)

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