New Delhi: Gold and silver in India will be taxed at 3 per cent under the Goods and Services Tax (GST) regime, the Finance Ministry Mr. Arun Jailtley announced after a meeting of the GST Council on Saturday.

Addressing the press after a meeting that saw the council clear six pending tax rates,  Finance Minister Arun Jaitley said the central government was “confident of sticking to target date of July 1”.

“The GST Council will set up committee to look into complaints regarding anti-profiteering clause,” Jaitley said.

“We were discussing the rules and (they) have been completed. Transition rules have been cleared and everybody has agreed for July 1 roll out,” Kerala Finance Minister Thomas Isaac told reporters here. The GST Council had last month fitted over 1,200 goods and 500 services in the tax brackets of 5, 12, 18 and 28 per cent.

Diamonds will also attract 3 per cent GST, while rough diamonds will have a tax levy of 0.25 per cent. Gems and jewellery have been put in the 3 per cent bracket as well.

Earlier, most states demanded a 5% GST on gold, silver and diamond in the GST Council meet but this did not find favour with ornament making hubs such as Maharashtra, Gujarat and Tamil Nadu, leading to the rate fitment for this class being deferred to June 3.

All India Gems and Jewellery Trade Federation (GJF), the national body of the gems and jewellery industry, had proposed GST rate of 1.25% for the sector.

In its representation to the government, the federation has said that a rate exceeding this level would hurt the industry as well as consumers and workers.

Mr. Ashok Minawala, past chairman and high-level committee member, GJF, said, “Keeping in mind the unique characteristics of the gems & jewellery sector, the karigars and small jewellers were kept out of the purview of excise duty. Therefore, while we welcome GST, we request the GST Council to kindly recognise the practical issues faced by the sector and levy not more than 1.25% GST on gems & jewellery.”