The All India Gem and Jewellery Trade Federation, which has proposed a 1.25 per cent tax rate on gems and…
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The All India Gem and Jewellery Trade Federation, which has proposed a 1.25 per cent tax rate on gems and jewellery products under the GST regime, is in dialogue with the government to resolve its concerns.
"Under Goods and Services (GST), what has been prescribed is the supply of goods. That means any movement of gem and jewellery products from one place to other will attract indirect tax," the Federation's former Chairman Bachhraj Bamalwa told reporters here on Monday.
"We have 10-15 movement in the manufacturing value chain. Artisans make jewellery for jewellers and there are movements for processing. If the tax is levied at every movement, it would create a problem," Bamalwa said.
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The GST Council also decided that a business entity, including artisans who earn Rs 20 lakh annually as making charge, will have to register themselves in the GST.
"Such threshold limit would be problematic for the artisans. It would be cumbersome for them to comply with all the GST norms," Federation's Chairman Nitin Khandelwal said at its Preferred Manufacturers of India – Regional Networking Meet in the city.
"We have proposed 1.25 per cent tax rate for GST and we are continuously in dialogue with the government with regard to the rate. There will be chaos in the industry if the GST rate is fixed above our proposed rate. The rate is kept open as of now," Bamalwa said.
The GST Council had decided on four tax rates under GST — 5 per cent, 12 per cent, 18 per cent and 28 per cent.
A cess would be further applicable on goods such as luxury cars, aerated drinks, pan masala and tobacco products. Khandelwal said the federation has so far met 17 finance ministers of different states, nine VAT commissioners, union revenue secretary and Finance Minister Arun Jaitley.
"They have assured us that our concerns will be taken care of," he said.
Khandelwal said that after the central government's drive for digital payment, about 75 per cent of transactions are now made in the digital mode while the rest is still cash-based.
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