GST on Gold , Diamond , Jewellary
Gold Industry in India
- India is one of the largest exporters of gems and jewellery and the it contributes a major chunk to the total foreign reserves of the country.
- In the coming years, growth in Gems and Jewellery sector would be largely contributed by the development of large retailers/brands.
- The overall net exports of Gems & Jewellery during April-December 2016 stood at Rs 175,879.24 crore (US$ 26.28 billion)
- India retained its top position in global gold consumption for the second consecutive year, fuelled by record high jewellery consumption at 703 tonnes.
Gold currently has an excise rate of 1% and states charge 1% VAT
GST Impact on Gold
- The 3% rate is a little bit higher from the current tax regime hence increase in price
- Some of area of unorganized sector will come under indirect tax regime
- Seller crossing 20 Lac turnover limit need to apply for GST Registration and do compliances
- Reverse charge in case of goods purchased from unregistered dealer
Applicability of Registration For Gold Seller
Section 22 to 25 specifies the persons who are liable to obtain GST Registration.
Every person who is engaged in supply of goods or rendering of services or both will be liable to be registered under the GST if
- Aggregate Turnover in a financial year of taxable supply of goods or services exceeds Rs. 20 Lac or
- Aggregate Turnover in a financial year of taxable supply of goods or services exceeds Rs. 10 Lac if person is located at North Eastern area ( Manipur , Arunachal Pradesh , Nagaland , Meghalaya , Assam , Tripura & Mizoram , Sikkim , Jammu & Kashmir , Himachal
Pradesh & Uttarakhand )
When to GST become Payable on Supply for Gold , Diamond ?
It’s important for GST registered enterprises to know the concept of time of supply, as it determines the time when the liability for payment of tax arises
- Date of issue of invoice or Last date of issue of invoice u/s 31
- The date on which the supplier receives the payment with respect to the supply
Download GST Invoice Format
Download GST Invoice Format – GST Invoice Excel
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