Kerala Jewellers Association Pushes for Uniform Gold Tax Under GST

As the Goods and Services Tax (GST) system is rolled out across the country, there is pressure on the government to create a more uniform tax structure for gold. Currently, different states have different tax rates for gold, which has created a lot of confusion for customers and retailers alike.

The Kerala Jewellers Association (KJA) has been pushing for a uniform gold tax under GST, arguing that this will help create a level playing field for retailers and customers across the country. The KJA has suggested a tax rate of 3% for gold under GST, which it believes will be fair and easy to implement.

The KJA has argued that having a uniform gold tax will make it easier for retailers to comply with taxation laws and reduce the possibility of tax evasion. It will also make it easier for customers to compare prices and shop for gold, since they will not have to worry about different tax rates in different states.

However, there are concerns that a uniform gold tax could lead to higher prices for customers in states where the tax rate is currently lower than 3%. Retailers in these states may have to pass on the increased cost to customers, which could in turn lead to a dip in demand for gold.

Despite these concerns, the KJA is optimistic that a uniform gold tax will be implemented under GST, since it will benefit both retailers and customers in the long run. The association has urged the government to consider its proposal and create a more streamlined and efficient tax structure for gold under GST.

Getting GST-ready. What you can do

If you are a small or medium business owner or a startup founder, it is important to get GST-ready as soon as possible. Here are some steps you can take:

Get your GST registration done if you haven’t already. You can do this online through the GST portal or through a GST practitioner.
Ensure that you are aware of the GST rates for your products or services, and that you are charging the correct tax rate to your customers.
Update your accounting and invoicing systems to comply with GST regulations. This may include changes to your billing software, data storage, and invoicing processes.
Train your staff on the new GST system, so that they are familiar with the changes and are able to assist customers with any queries they may have.
Ensure that you are filing your GST returns on time and accurately, to avoid any penalties or legal issues.

By following these steps, you can ensure that your business is prepared for the new GST system and is able to comply with the regulations. This will help you avoid any legal or financial issues, and will also help build trust and credibility with your customers.