4% GST Rate May be Decided on Gold, Silver

Mumbai: The Centre and the states may settle for 4% goods and services tax (GST) on bullion and opt for a special rate for financial services, amid intense lobbying from the two sectors in the run up to the rollout from July.

Sources also said that in case of gold and silver the southern states are in favour of a 6% levy, considering some of them levy up to 5% VAT. In contrast, some of the western states are keen on a low levy of 1% or so. While slabs for goods were finalised by the GST Council, bullion and services were kept out of the decision.

The decision on rates is expected at the next meeting of the GST Council, scheduled in Srinagar on May 18 and 19, where product-specific levies are expected to be finalised along with rules that will govern the new tax regime. The commerce ministry is also keen that some of the concerns such as refund of taxes to exporters be reworked.