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GST Rate Cut: Jewellery Making Charges Slashed to 5%

Jewellery Making Rate Cut

The GST Council has lowered rates for jewellery making and diamond processing from the earlier 18% to 5%. The earlier decision to levy 18% tax on jewellery was an unpopular decision as several jewellery manufacturers felt it would lead to significant job losses as around 95% of jewellery is commissioned based on job work.

Surendra Mehta, secretary, India Bullion and Jewellers Association, was of the opinion that the sharp cut would enable tax compliance easier and also help reduce the fear of job losses among the jewellery workers.

It is expected that the jewellers would now begin with their preparations for getting GST ready and upgradation of their IT infrastructure and other necessary requirements.

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