We all know that the Government of India implemented the Goods and Service Tax (GST) on 1st July 2017. Do you know what exactly do we mean by Goods and Service Tax?
What is Goods and Service Tax (GST) in India?
Goods and Service Tax or GST is a type of an indirect tax that has replaced various types of indirect taxes such as VAT, service tax and more. This tax was imposed on the supply of goods and services in the country.
There are 3 types of Goods and Service Tax or GST.
Types of Goods and Service Tax (GST)
CGST stands for Central Goods and Service Tax. The Government levies this on inter-state transactions of goods and services.
SGST stands for State Goods and Service Tax. The Government levies this on intra-state transactions of goods and services.
IGST stands for Integrated Goods and Service Tax. This type of tax is levied on the import and export as well as inter-state transportation of goods and services that are shared by both centre and state.
There are various benefits of levying Goods and Service Tax such as curbing tax evasion, etc. Let us briefly understand the benefits of Goods and Service Tax or GST in India.
Advantages of Goods and Service Tax (GST)
1. Comprehensive and Well-Structured Tax System
Implementation of Goods and Service Tax has brought various types of indirect taxes, such as VAT, service tax, etc., under one roof. With this, the taxation system has been simplified, making it much more comprehensive and consolidated.
2. Uniformity in Taxation
Goods and Service Tax or GST has brought uniformity in taxation. As a result, it becomes easier and seamless for the small business owners who have to file Tax Returns as sometimes, they do not have the accessibility to hire tax professionals to help them pay taxes.
3. GST Reduced Corruption
With the implementation of Goods and Service Tax (GST), corruption in the country has seen a downfall.
4. Increase in GDP
Implementation of Goods and Service Tax (GST) has helped increase the GDP of the country. Moreover, because of this, the country's GDP is expected to rise in the coming years.
5. Beneficial for People Who Want to Start Their Own Business
Implementation of Goods and Service Tax or GST is beneficial for all those who want to start a business of their own. As GST has made taxation well-constructed and consolidated, people do not have to worry about taxes in different states.
6. Attracted Foreign Investment in India
Did you know that the implementation of Goods and Service Tax or GST has opened the doors to foreign investments? This is because GST has now made taxation process in India unified and simple, making it seamless and hassle-free for foreign investors to invest in India.
Implementation of Goods and Service Tax or GST has impacted the prices of various goods and services such as gold. The Government has now implied 3% GST on Gold. Are you planning to buy or invest in gold in India? Before you head out to buy or invest, knowing all about Goods and Service Tax or GST on gold is imperative. This will ensure that you do not face any hassle or inconvenience in future and can continue with buying gold seamlessly.
Let us now understand all about GST on gold briefly and conclusively.
An Ultimate Guide on Goods and Service Tax or GST on Gold
1. GST on Gold Rate
Before implementing GST on gold, the customer had to pay a total of 2% of tax, including VAT and service tax. However, after the implementation of GST, the taxes have now shifted upto 3% in total.
2. GST on Jewellery
If you are getting your old jewellery set repaired , you have to pay a total of 5% of taxes after the implementation of GST on gold. Before the implementation of GST on buying jewellery in India, the total tax to be paid by the customer was 18%. As a result, people have seen a sign of relief as the tax percentage has now been reduced from 18% t0 5%.
3. GST on Gold sale
After implementing a Goods and Service Tax or GST on gold, you do not have to pay taxes to the Government if you plan to sell your gold and buy gold from that money. However, before Goods and Service Tax or GST was implemented, an individual had to pay 3% of taxes to the Government if you were selling off your old gold and buying new gold with the same money.
4. GST on Import of Gold
After the implementation of the Goods and Service Tax or GST on Gold, the import duty on gold is now 10%. As a result, the total cost of buying imported gold has seen a rise.
Moreover, it is one of the best gifts. So, now if you plan of investing in gold, you will have a conclusive and brief information on Goods and Service Tax or GST on Gold. Moreover, you also know the GST percentage when it comes to buying of gold, gold jewellery, selling of gold, import of gold, etc. In recent times, gold has become one of the best investments and a great sign of wealth.
*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time’
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
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