A panel of State Finance Ministers veered around to agree on a proposal to levy 3% GST on sale of old gold and jewellery to check tax evasion, Kerala Finance Minister Thomas Isaac said.
The Group of Ministers (GoM) also decided to implement the e-way bill system for transportation of gold within a State.
Mr. Isaac said on Friday that the GoM arrived at a consensus on bringing sale of old gold within the GST ambit under reverse charge mechanism (RCM). “Sale of old gold will attract GST at 3% under RCM.” This would check tax evasion as most smuggled gold is sold as old jewellery to evade GST.
