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Gold oranament labour

26 July 2023

we have make a gold oranament customer give only gold we make a oranament and give labour charges bill how much gst on this labor charges

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3 Replies

Nikita Agarwal (Semi Qualified CA) (3208 Points)
Replied 26 July 2023

Gold jewelry making is subject to GST
GST rate for services related to the jewelry industry is 5%. Therefore, if the labor charges for making the gold ornament were, say, ₹10,000, the GST applicable would be:

GST = (Labor Charges × GST Rate) GST = (₹10,000 × 5/100) GST = ₹500

So, the GST on the labor charges would be ₹500.

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Pranjal Gupta (141 Points)
Replied 26 July 2023

In India, the Goods and Services Tax (GST) is applicable to the supply of goods and services. When you provide labor charges for making a gold ornament using the customer's gold, it would be considered a service. Therefore, GST would be applicable to the labor charges.

The applicable GST rate for services can vary depending on the specific nature of the service being provided. As of my last update in September 2021, there were different GST rates for various services, such as 5%, 12%, 18%, or 28%. However, these rates may have been subject to change after my last update, so it's essential to check the latest GST rates on the official GST website or consult a tax professional to confirm the current applicable rate.

To calculate the GST amount on the labor charges, you can use the formula:

GST Amount = (Labor Charges * GST Rate) / 100

For instance, if the labor charges are Rs. 1,000, and the applicable GST rate is 18%:

GST Amount = (1000 * 18) / 100 = Rs. 180

So, in this example, the GST on labor charges would be Rs. 180.

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