GST Rate on Gold Jewelry Which is made out of Gold

GST is applicable on Gold and Jewellery that is made out of Gold. GST on Gold is 3% and extra 5% GST would be applicable on making charges. So, GST will be applicable on both – Gold @ 3% and also on making charges @ 5%.

Exp– While purchasing a necklace in which value of Gold is Rs. 100000 and Making Charges is Rs. 5000. In this case calculation of GST and value of Jewellery would be as below-

 

GST Price on Gold Imported from Outside Country

If gold is imported from outside country, NO GST will be applied however, custom duty @10% will be applicable on the value of imported goods. Hence, when a gold is imported out of no GST is payable but you have to pay custom duty @ 10% on value of gold/jewellery as per the situation.

Import of Raw Gold or Semi Raw Gold by Registered Individual or Business –

If Raw Gold, Semi Gold and even Jewellery is imported by the registered business or individual then also Custom duty @10% will be applicable, the custom duty will be added to the cost of imported gold, the indene of which shall be passed to the end user. Also, GST will be applicable on Custom Duty while making sale of Imported Gold in India. The Situation can be understandable form the below example.

Example – ABC ltd. Imported Raw Gold from UAE for Rs. 100000 on which Custom Duty @ 10% will be Applicable. Mr. E (an end user) buys jewellery made out of Imported Goods from ABC Ltd.

ABC Ltd. Apart from cost of gold charged Rs. 10000 as making charges. What will be the Cost of Jewellery to Mr E

The Calculation of Cost of Jewellery to Mr E is as below:

 

Points to Consider While making Purchase of Gold/Jewellery

Below things will save you from payment of extra Tax then what required

  1. Adornments are typically made using 22KT, 18KT and 14KT gold. Lesser the nature of gold – Lower the price will be and lower GST as well.
  2. If any Stone, Gems, Diamonds, etc. are included in Weight and Value of Jewellery make sure that Such Stone, Gems, Diamonds, etc. will be weight and valued differently as their tax treatment is different from Gold.
  3. Prices of Gold are tend to daily changes, so see the price of gold before making purchase.
  4. Make sure the Jewelery/ Gold you purchased is hallmarked/BIS certified.

Enquire with Certicom Consulting in case you have any further queries related to this.

Legal Appeal under GST (Authoritative Guide)

In this article we will discuss the nuts and bolts of raising an application to the top level specialists for example the High Court and the Supreme court.

Taking An Application To The High Court

High Court is the second-most noteworthy appeal discussion accessible under GST for example if that an appellant is not happy with the result of a case (including significant inquiry of law ) as endorsed by the Appellate Tribunal, the appellant can take an appeal against the order to the High Court. Though, it ought to be noticed that the appeal ought to be raised within a half year from the date of issuance of the order (against which the appeal is made).

It ought to be noticed that cases including a significant inquiry of law only are permissible for appeal in High Court. The High Court will plan the generous inquiry of law engaged with any case and hear the appeals based on the inquiry, which is open for argument by the respondent at the time of hearing.

The High Court can settle on any issue which –

(a) has not been controlled by the State Bench or Area Benches OR

(b) has been wrongly controlled by the State Bench or Area Benches, because of the subject of law raised.

For any appeal between at least 2 states or for the conflict of opinion between the State and the Center, the cases will go straightforwardly to the Supreme Court.

Decision made by The High Court

The hearing bench of a high court comprises of atleast 2 High Court Judges. For any order to be passed, the choice will be made dependent on the lion’s share. In case of no result because of distinction in opinion, the case will be heard (constrained to the point of conflict) by atleast one other judge and the final decision will be taken on a lion’s share basis, considering the opinions of both the first and new judges.

Raising An Application To The Supreme Court

Supreme court is the top panel for a lawful appeal under GST. For an appellant isn’t happy with the result of the appeal raised to the High Court, National Bench or Regional Benches, he can raise an appeal to the Supreme Court, subject to High Court’s certification for the application to be fit for appeal to the Supreme Court.

Additionally, as referenced prior, cases including 2 states or differences of opinion between the State and Center will be consequently appealed to the Supreme Court.

Pre-Appeal Conditions – Total Due To Be Paid

According to the GST appeal system to Supreme Court, for an appellant trying to raise an application to the Supreme Court, all total amount because of the Government according to the request passed by the Appellate Tribunal or by the High Court should be paid before appealing to the Supreme Court.

Email us at [email protected] for any queries.

Exclude Income under Income Tax (Detailed Blog)

Exclude Income under Income Tax– Section 10

The different items of income referred to in the various clauses of section 10 are excluded from the total income of an assessee. These incomes are known as exempted incomes. Subsequently, such income will not enter into the calculation of taxable income.

Few of Income not taxable under Income Tax Act

AGRICULTURAL INCOME – SECTION 10(1)

Agricultural income is excluded under section 10(1).
However, agricultural income has to be aggregated with non agricultural income for calculating the rate at which non-agricultural income would be subject to tax, in case of individuals, HUF, AOP & BOIs etc., where the –
• agricultural income exceeds ` 5,000 p.a. and
• non-agricultural income exceeds basic exemption limit.
Below are the steps to be followed in calculation of tax –
Step 1: Tax on non-agricultural income plus agricultural income
Step 2: Tax on agricultural income plus basic exemption limit
Step 3: Tax payable by the assessee = Step 1 – Step 2
Step 4: Add Surcharge/Deduct Rebate u/s 87A, if applicable.
Step 5: Add Health and Education Cess@4%.

PARTNERS SHARE – SECTION 10(2A)

The partner’s share in the total income of the company or LLP is excluded from tax.

INCOME OF OFFICIAL OF AN EMBASSY, HIGH COMMISSION, ETC. – SECTION 10(6)

Remuneration received by a person, who is not a citizen of India, as an official of an embassy, high commission, legation, consulate or the trade representation of a foreign State or as a member of the staff of any of these officials would be excluded, subject to satisfaction of few conditions:

  1. These members of staff are subjects of the country represented and not engaged in any business or profession or employment in India else than as members of such staff.
  2. remuneration of corresponding officials of the Government resident for similar purposes enjoy similar exclusion in the other Country.

INCOME RECEIVED ON ACCOUNT OF ANY DISASTER – SECTION 10(10BC)

Compensation received or receivable from the Central Government, State Government or local authority by a person or his legal heir on account of any disaster is excluded except to the extent of loss or damage permitted as deduction under the Act.

SUKANYA SAMRIDDHI ACCOUNT – SECTION 10(11A)

Any payment from Sukanya Samriddhi Account

SCHOLARSHIP – SECTION 10(16)

The value of scholarship permitted to meet the cost of education would be excluded from tax in the hands of the recipient irrespective of the amount or source of scholarship.

DAILY ALLOWANCE – SECTION 10(17)

Daily allowance received by any Member of Parliament or of State Legislatures or any Committee thereof are excluded.

AWARDS – SECTION 10(17A)

Awards for literary, scientific and artistic works and other awards by the Government are excluded.

PENSION – SECTION 10(18)

Pension received by individual who has been in service of Central or State Government and has awarded “ParamVir Chakra” or “MahaVir Chakra” or “Vir Chakra” such other gallantry award as the Central Government notifies is excluded from tax.

SECTION 10(26)

Income from any source in the mentioned areas or States in which member of a Scheduled Tribe is staying or income by way of dividend or interest on securities is excluded in the hands of member of the Scheduled Tribe.

SIKKIM – SECTION 10(26AAA)

Income from any source in the state of Sikkim, dividend income and interest on securities is exempt in the hands of a Sikkimese person. This exclusion is not available to a Sikkimese woman who, on or after 1st April, 2008, marries a non-Sikkimese individual.

SUBSIDY FOR TEA – SECTION 10(30)

The amount of any subsidy received by any assessee engaged in the of growing and manufacturing tea in India through or from the Tea Board will be wholly exclude from tax.

SUBSIDY FOR RUBBER, COFFEE AND CARDAMOM – SECTION 10(31)

The amount of any subsidy received by an assessee engaged in the business of growing and manufacturing rubber, coffee, cardamom or other specified commodity in India from or through the Rubber Board, Coffee Board, Spices Board or any other will be excluded.

SECTION 10(35)

Any income received in respect of units from the Administrator of the specified undertaking/ specified company/ Mutual Fund shall be exempt. However, income originating from transfer of such units would not be excluded.

SPECIAL ECONOMIC ZONES (SEZS) – SECTION 10AA

Tax holiday for unit established in Special Economic Zones (SEZs), which has started or begins to manufacture or produce articles or things or provide any service on or after 1.4.2005 in any SEZ for 15 consecutive assessment years with respect of its profits derived from exports of such articles or things or export of services.

Amount of exemption = Profits of Unit in SEZ x Export turnover of Unit SEZ/Total turnover of Unit SEZ

100% of these profits would be excluded in the first five years, 50% in the next five years and in the last five years, 50% subject to transfer to SEZ Re-investment Reserve Account.

Enquire with Certicom Consulting in case of any further queries.