In the recently concluded GST Council meet on 19th May, the majority of states demanded 5% GST on gold, silver and diamond, however Maharashtra, Gujarat and Tamil Nadu, wanted a lower tax. These states are primarily known as ornament making hubs. Since a decision could not be agreed upon, the decision has been deferred to June 3.
Kerala’s Finance Minister, Thomas Isaac, explained that there would be a single tax rate across the value chain on gold, silver and diamond and making charges would not be taxable. Furthermore, All India Gems & Jewellery Federation (GJF) is appealing for 1.25% rate on jewellery.