The jewellery industry got much-awaited relief from the Goods and Services Tax (GST) Council on Sunday, 11th June 2017 which in its 16th meeting reduced the applicable tax rate on jewellery making charges from 18% decided earlier to 5%.
GST Council’s earlier decision of 18 per cent tax on jewellery making charges had the jewellery manufacturers worried as almost all of the jewellery sold in India involves making charges, and the higher tax incidence would have hurt the jewellery industry.
The tax rate on movie tickets costing less than Rs100 is likely to come down.
Stocks of jewellery companies were trading higher in early trade today on the back of this positive news. At 10:45 a.m., shares of Gitanjali Gems was trading up Rs 1.80 or 2.77% at Rs 66.80; Tribhovandas Bhimji Zaveri up Rs 2.30 or 2.58% at Rs 91.60; Lypsa Gems and Jewellery up Rs 1.20 or 1.99% at Rs 61.50; PC Jeweller up Rs 7.80 or 1.47% at Rs 538.00 and Titan Company up Rs 7.10 or 1.35% at Rs 532.05.
On Sunday, the GST Council reduced the tax rates on 66 items out of the 133 items it received representations for. The Council lowered the tax rate on computer printers to 18 per cent from 28 per cent, while the tax rate on insulin, agarbatti was lowered to 5 per cent. The tax rate under GST on school bags was reduced to 18 per cent from 28 per cent.