New Delhi: To much relief in the gold jewellery and diamond processing industry, the goods and services tax (GST) Council slashed the applicable rate on making charges from the 18 per cent decided earlier to five per cent.

While announcing the decision along with similar reduction on GST rate on various other products and services, Union Finance Minister Arun Jaitley said, “The GST Council has received 133 representations. An officers’ committee made recommendations after studying these representations. Thus, the GST Council has reduced the tax levels in 66 out of 133 cases…The diamond processing and others would attract a levy of five per cent now.”

The Council’s earlier decision of 18 per cent attracted much discontent among jewellery manufacturers, as impractical and likely to cause immense job losses, as 95 per cent of jewellery is made on the basis of job work.

Welcoming the decision, Mr. Nitin Khandelwal, Chairman GJF, said, “We are extremely thankful to the Govt for implementing 5% GST on making charges / Job work. The exhaustive efforts of GJF has finally paid off. The lower rate of job work is a big relief for manufacturers and karigars and also for the customers as they do have to now end up paying the earlier proposed 18%. This will also ensure there will be no tax evasion and industry will become more organised and compliant. There are still few more concerns, which GJF being the apex body will continue to protect, promote and progress the industry, by pursuing the Govt for ease of operation and business in GST. We are highly positive that the Government will continue to support our industry to its best”