India is a land of precious stones, where the country is a treasure trove of rare gems, which are highly valued across the world. However, when it comes to understanding the GST rates and HSN codes for precious stones, it can be a bit confusing for small and medium business owners and startup founders. In this article, we will discuss the GST rates and HSN codes for precious stones.
Precious stones are natural minerals that are highly valued for their beauty and rarity. Some of the most popular precious stones include diamond, sapphire, ruby, emerald, and pearl. These stones are often used in jewelry, but they can also have other uses, such as in the manufacturing of electronics and scientific instruments.
Precious stones come under Chapter 71 of the Harmonized System of Nomenclature (HSN) codes. The HSN code for precious stones is 7103.
The GST rates for precious stones depend on the type of stone and its value. The GST rates for precious stones are as follows:
1. Diamonds – 0.25%
2. Colored gemstones – 3%
3. Studded jewelry – 3%
Studded jewelry refers to any jewelry that has precious stones set into it. This can include rings, earrings, necklaces, bracelets, and more. The GST rate for studded jewelry is 3%.
The value of a precious stone is determined by a number of factors, including its rarity, size, color, and clarity. The value of a precious stone is often measured in carats, which is a unit of weight equivalent to 0.2 grams. The higher the carat weight of a stone, the more valuable it is.
Understanding the GST rates and HSN codes for precious stones is important for small and medium business owners and startup founders. With the information provided in this article, you can now make informed decisions about the value and taxation of precious stones in India.
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