Impact of GST on Jewelers and Taxation of Various Cases
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Rates of Taxes applicable Taxation of various transactions 1. Consolidated Bill: Customers walks into a Jeweler showroom and buys a Gold ornament worth Rs. 1,00,000. a) The Jeweler will charge GST @ 3% on Rs. 1,00,000. b) The charge would include Making Charges & Wastage c) Hence, it’s a composite supply as defined under section 2(30) comprising of supply of Gold ornament along with supply of ornament making services. d) Gold ornament being the principal supply, the entire value of taxable supply shall be charged @3% as per section 8 of the CGST Act. 2. Itemized Bill: Customers walks in to a Jeweler showroom and buys a Gold ornament worth Rs. 1,00,000 and the Jeweler charges separately for Gold and making charges. i. Making charges charge is an Independent Supply ii. Gold Ornament Value including wastage Loss collected separately is an Independent Activity. In this case, since