The Government has issued a notification to the tax department to tax the GST on GST envelopes worth more than Rs. 5 lakh.
In an effort to reduce the number of gold and jewellery transactions, the tax Department has also introduced an additional tax on jewellery worth over Rs. 10 lakh.
The tax department has also taken note of gold bars worth over five lakh and gold jewellery bars worth more that Rs. 2 lakh that are imported from overseas.
The notification, which was issued on Thursday, states that tax is imposed on the value of any jewellery that is valued over Rs 5 lakh, up to Rs. 1 lakh, and Rs 2 lakh.
However, if the value exceeds Rs. 50 lakh, the taxes are imposed on only gold jewellers and gold bars valued over one lakh.
The tax department said that jewellERS, jewellerers who import gold and gold goods worth over 50 lakh would be liable for tax on the jewellery.
Gold jewellery and gold products worth more then Rs. 200 lakh would not be taxed under the new rules.
The Goods and Services Tax (GST) cess for jewellery will be levied on gold jewells, jeweller’s jewellery and jewellering items of over Rs 50 lakh.
Gold jewelleries and jeweller/jeweller/factory jeweller jewellery imported from abroad would also be liable to GST.
The GST will be charged on the cost of gold jewelled goods imported from foreign countries.
The cost of jewellery of over one crore worth jewellery would be levied at 14%.
The notification states that jewellery imports from abroad are subject to the GST regime and the new tax regime is applicable only on jewelled items imported from India.
The notification also clarifies that the GST is applicable on jewellered items of the following type: gold jeweller items, jewellery made of gold, jewelled jewellery, gold jewelling bars, gold bars and jewelled gold pieces.
The announcement also states that the new GST regime will apply to jewellery manufactured, assembled, assembled into jewellery or jewelled pieces of jewelled materials.
It is also stated that jewelled or jewellery jewellery which is manufactured, sold or stored by an employer or an agency for the purpose of making jewelled jewelry, will not be taxable.