Jewellers welcomed the decision to fix the goods and services tax (GST) rate for gold at 3 percent and for rough diamonds at 0.25 percent, saying the move will help boost the industry.
They said the government has understood the need of the bullion industry and created a special category in the GST.
“We welcome the government’s decision of 3 per cent GST for gold and 0.25 per cent on rough diamonds. We are happy that the Centre has created a special category, which will help the industry,” said Nitin Khandelwal, All India Gems and Jewellery Trade Federation (GJF) Chairman.
He said the GST rate is likely to be below the fixed 3 per cent as the government has also announced input tax credit.
The GST Council, chaired by Finance Minister Arun Jaitley and comprising state counterparts, on Saturday, 3rd June 2017, decided to tax gold at 3 per cent and rough diamond at 0.25 per cent.
Echoing a similar view, former GJF chairman G V Sreedhar said even as it will be challenging it will be better for the industry.
On rough diamonds, he said, it should have continued at 0 per cent instead of 0.25 per cent as the country is the largest producer of polished diamonds in the world.