Challenges Faced by the Gold Sector in Implementing Gst
- Gold sector, Import, Gems and jewellery, Economy
Over 7 percent of India's gross domestic product (GDP) and 15 percent of India's total goods exports are made up of the gems and jewellery industry. Tax on Gold in India rose to 3 percent on 1 July 2017 when the Goods and Services Tax (GST) was implemented. Markets were predicted to respond negatively, but instead they responded positively. The focus of the article was on unclassifiable manufacturing because of the wide range of items produced by this sector. Paying 3% GST on Gold has a little effect on jewelers’ operating capital. After accounting for the gold tax, a 1% service tax and a 1% VAT brought the total to 2%. Thanks to GST, gold's tax rate has been reduced to 3%. In addition to bringing more of the gold market into the correct sector, GST will also improve supply chain clarity.