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Old gold jewelers to incur loss if GST comes to existence
Posted on: 05/Aug/2016 11:58:42 AM
If Goods and Service Tax bill comes to existence, those who sell old jewels will have a bear a loss equivalent to the tax amount for gold in addition to wastage and damage. The centre is likely to bring various taxes under the single tax GST. This is believed to streamline all prices. After a few legal procedures, from next April, this law is to come to practice. If this gets launched, all services and products except petrol and a few others will be charged with 18 percent extra tax.
Due to this, old gold sellers will be bound to bear loss equivalent to GST tax amount. At present, these jewelers make money by getting back the money taking back the money made as investment. In this way, the tax amount paid at the time of buying bullions of gold are got back at the time of gold jewel sale.
However, for gold jewels made by melting old gold jewels, there is no option to get back the tax amount for capital investments. However, gold jewelers impose this loss in GST tax on old gold jewelers. Amount equivalent to tax will be deducted from the old jewel.
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