All India Federation of dealers in precious stones and jewelery (All India Gem & Jewellery Traders Federation , GJF) expresses concern about the rate of tax on goods and services (Goods and Services Tax, GST) to 4%. She suggested the authorities to lower the rate to 1.25% for the jewelry segment. GJF urged to enter the minimum rates, even though the convening of an emergency three-day meeting of the Board of GST.
The Indian government plans to replace the excise tax rate GST. In turn, GJF offered advice on the GST to consider levying of excise duty on non-organized the industry of gems and jewelry.
GV Sridhar (GV Sreedhar), chairman of GJF, said: "Gold is a very sensitive product and can not be taxed at the higher levels While the jewelry industry is currently preparing for the upcoming era of GST, the proposed tax rate. 4% will inhibit the growth of the industry and turn it into the informal economy. There is a precedent for the collection of VAT in the past, and after 1 percent excise tax was the highest rate, which the government of the taxable jewelry enterprises. Therefore GJF suggested that GS T for the industry of precious stones and jewelery should stay at the level of 1.25%, if the government wants to achieve organization of the industry. "
He also added that GJF send a representative to the government council tax this week. This again shows the various problems of the sector.
Ashok Minavala (Ashok Minawala), a member of the GJF high-level Committee on Excise, said that the small jewelers have been exempted from payment of excise duty.
"So, while we welcome the initiative of the tax, we ask for advice on GST recognize the practical issues faced by the sector, as highlighted in the Committee's report before taking any decision", - he added.
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