InvestorQ : Can you explain how the input tax credit (ITC) will work in case of GST on gold?
Sam Eswaran made post

Can you explain how the input tax credit (ITC) will work in case of GST on gold?

Answer
image
swati Bakhda answered.
2 years ago
Follow

While prima facie the tax on gold appears to have gone up marginally by 0.5 to 1%, it also needs to be remembered that GST pre-supposes a seamless flow of input tax credit (ITC). Under the ITC scheme even the tax on inputs paid that were not available under the old system, will now be available. That will not only further reduce the eventual impost on gold makers but also encourage a lot of unorganized players to shift to the organized sector. A shift to organized sector will help these gold makers and jewellers to not only access cheaper institutional credit but also give them a greater stamp of credibility to attract more customers. GST on gold will offer a great opportunity for smaller unorganized players to move up the organized value chain. While the impact of the ITC is yet to be gauged, it is definitely a contributor towards making the GST factor more attractive for gold demand and gold prices.

0 Views