The jewellery industry got much-awaited relief from the Goods and Services Tax (GST) Council on Sunday, which in its 16th meeting reduced the applicable tax rate on jewellery making charges from 18% decided earlier to 5%. This sharp cut in the making charges has been welcomed by the jewellery sector.
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.
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.
“The GST Council has received 133 representations. An officers’ committee made recommendations after studying these representations. Thus, the GST Council has reduced the tax levels in 66 out of 133 cases…The diamond processing and others would attract a levy of five per cent now,” said Union Finance Minister Arun Jaitley, after the 16th GST council meeting on Sunday.
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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. The GST rate on job works was lowered to facilitate the outsourcing of business activities. The tax rate on movie tickets costing less than Rs100 is likely to come down.
“Received representation for about 133 goods. After considering representation, the GST council has reduced tax levels in 66 cases,” Jaitley said as reported by ANI.