Imports of gold and other precious metals will attract 3% IGST, payable by the importing bank /nominated agency, the Central Board of Excise & Customs (CBEC) has clarified in its latest set of FAQs related to the gems and jewellery industry. The amount paid can however be taken as input credit by the banks, it added.
The communication has been widely publicized, including through advertisements in the media, and is a part of the ongoing series of clarifications regarding procedural aspects and application of the new GST, being issued by the government body.
The document also clarified that the GST would be payable even if the gold / silver is imported on consignment basis wherein the ownership of the metal is with the supplier of the bullion which maybe an overseas entity, stating that the bank, which is the registered importer will be liable to make the payment.
Payment of IGST would be applicable to all imports of precious metals from July 1 onwards, the CBEC said, while clarifying a number of other procedural issues as well.
In addition, the FAQs also addressed the question of applicability of GST when jewellers charge consumers on the basis of gold value plus making charges. The CBEC clarified that GST would be payable at 3% on the total value paid by the customer, inclusive of the making charges.
The document also provided clarifications on GST with regard to advertising and communication material provided to distributors and with regard to job work.
News Source :gjepc.org