GST rate on gold is 3% against the current 2%
New Delhi, June 4, 2017: The GST Council on Saturday fixed the rate of tax on gold at 3 percent against the current tax of about 2 percent.
Finance Minister Arun Jaitley said there was consensus to peg this rate of tax at 3 percent after an extensive debate to decide it between 2 and 5 percent.
This slab is lower than the lowest 5 percent.
The decision comes amid lobbying by traders demanding that the tax rate should be kept somewhere closer to one percent.
The experts feared that the higher rate may push tax evasion. Already the proportion of cash transaction on the gold was high.