The central government is now planning to impose a 3 per cent GST on selling old gold or gold jewelery.
Gold is always a useful asset in times of crisis. Gold is proving to be the same in the opposite circumstances that arose from the current Corona epidemic. Also, gold has proved to be a better investment option for investors than other assets during the Corona period. In such a situation, now the central government is going to impose more GST on it amid rising gold prices. Due to which the common man may have some trouble.
GST will be on sale of old gold and jewelery
The central government is now planning to impose a 3 per cent GST on selling old gold or gold jewelery. The information has been given by Kerala Finance Minister Thomas Issac himself. According to news agency PTI, a decision on this is expected in the next meeting of the GST Council. This ministerial group includes finance ministers from Kerala, Bihar, Gujarat, Punjab, Karnataka and West Bengal. In fact, this Group of Ministers was formed to review the implementation of the e-way bill for the transportation of gold and precious gems.
This is how the government can charge GST
This 3% GST being imposed by the government on selling old gold or gold jewelery will be charged as RCM (Reverse Charge Mechanism). That is, after the implementation of the new system, if a jeweler buys old jewelery from you, then he will charge three percent GST from you as reverse fee. In general words, if you sell old jewelery worth one lakh rupees, then 3000 rupees will be deducted as GST. However, according to Kerala Finance Minister Thomas Isaac, nothing has been finalized regarding this arrangement. But the committee officials will consider its implementation.
At present, GST seems so much on gold
For your information, let us know that GST on gold and GST on gold making charge are different. On gold jewelery, where 3 per cent is GST. At the same time, 5 percent GST rate is fixed on the making charge of gold jewelery. So while buying gold jewelry, keep in mind that you get a separate GST on gold jewelry and a separate GST on gold making charge. If the jewelers do not do so, you can file a complaint.
GST is the highest on this gold
GST rate is highest on gold biscuits. Actually, it is nothing else but the purity of gold. Let me tell you, gold biscuits are made by melting with pure 24 carat gold. Therefore, the rate of GST has been kept at the highest 18 per cent on gold biscuits.
Shopkeepers will have mandatory e-way bill
The GoM has also decided that gold and jewelery shops will have to withdraw e-invoices for every purchase and sale. Actually, this step is being taken to stop tax evasion. Also, after the implementation of GST, the revenue from gold has decreased significantly. Therefore, the government is now ready to make the e-bill mandatory.
