Amended rates for Precious & Semi Precious Stones effective from 25.01.

2018

1. As mentioned in our earlier note that there is lack of clarity on the matter that the
reduction in rates of GST is for diamonds as well as precious stones or only for
diamonds; the clarity will arise only after the government issues the relevant notifications
in this regard.
2. The relevant notification giving effect to the decisions taken by the GST council in its
25th meeting have been issued. The new rates of GST shall be applicable w.e.f. 25th
January 2018. The new rates applicable on precious & semi-precious stones are as
follows:

S.No. HSN Description Rate

1. 7102 All goods [All kind of Diamonds] 0.25%
2. 7103 Precious stones (other than diamonds) 0.25%
Ungraded precious stones (other than diamonds)
3. 7103 Semi-precious stones [whether or not worked or graded but not 3%
strung, mounted or set]
Semi-precious stones [temporarily strung for convenience of
transport
(other than Unworked or simply sawn or roughly shaped)
4. 7103 Semi-precious stones [unworked or simply sawn or roughly 0.25%
shaped]
5. 7104 Synthetic or reconstructed Precious stones 0.25%
6. 7104 Synthetic or reconstructed semi-precious stones [whether or 3%
not worked or graded but not strung, mounted or set;
Ungraded synthetic or reconstructed semi-precious stones,
[temporarily strung for convenience of transport]
7. 7104 Synthetic or reconstructed semi-precious stones [unworked or 0.25%
simply sawn or roughly shaped]
8. 7117 Imitation jewellery [other than bangles of lac/shellac] 3%
3. Nutshell Summary:
i. All kinds of diamonds shall be taxed at the rate of 0.25% w.e.f. 25.01.2018.
ii. All kinds of precious stones shall now be taxed at the rate of 0.25% w.e.f.
25.01.2018
iii. Semi-precious stones which are not strung, mounted or set or which are
temporarily strung for transportation shall continue to be taxed @ 3%.
iv. Semi-precious stones other than those referred in point (iii) above shall be taxed
at 0.25%.
v. Imitation jewellery shall continue to be taxed at 3%.
4. Disclaimer:
This note takes into consideration the important amendments made by the GST council in
the rates of precious & semi-precious stones and is purely for the academic purpose.
Clients are advised to take opinion before undertaking any business transactions in
pursuance of this note.

Source: Notification No. 06/2018-Central Tax (Rate)

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