Hello GST: Bill to snatch tax exemptions enjoyed by gems sector

Currently state taxes do not exceed 2 percent in the sector but under GST the proposed rate is 2-6 percent. As per the proposed bill, supplies will also be taxed which could lead to higher working capital requirements and valuation issues.

The gems and jewellery sector in India enjoys several tax exemptions at present, which is likely to change once the goods and services tax (GST) bill is passed.

Currently, state taxes do not exceed 2 percent in the sector but under GST the proposed rate is 2-6 percent. As per the proposed bill, supplies will also be taxed which could lead to higher working capital requirements and valuation issues.

In an interview with CNBC-TV18’s Menaka Doshi, Jayraj Sheth of Ernst & Young (EY) said that the only advantage with GST is that it could create a more level playing field by bringing unorganized players into the tax-net.

“A higher tax burden under GST could significantly hurt the net-profit of companies and their exports,” he further added.

Source:http://www.moneycontrol.com/news/economy/hello-gst-bill-to-snatch-tax-exemptions-enjoyed-by-gems-sector_5025281.html

2 Replies to “Hello GST: Bill to snatch tax exemptions enjoyed by gems sector”

  1. SHANKAR KADAM says:

    I AM LABOUR CONTRACTOR IN SEEPZ SEZ IN MUMBAI. I DON’T HAVE ANY ST OR VAT NUMBER BECAUSE IT IS EXEMPTED IN SEEPZ. IS IT COMPULSORY TO TAKE GST NUMBER FOR ME ? OR GST IS ALSO EXEMPTED IN SEEPZ ? NO NEED TO TAKE IT. AND IF IT IS NECESSORY TO TAKE GST NUMBER. HOW CAN I GATE IT ? CAN I GET FRESH GST NUMBER RIGHT NOW ? PLEASE GIVE ME DETAILS ABOUT THIS.

    1. Admin says:

      Broadly, there will be least number of exemptions in GST. Kindly check with an expert for the same.

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