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MAKING CHARGE

28 July 2019

Gold rate ₹ 3000 per Gram.Total weight to sold 10 Grams.Total Value before Tax ₹ 30000.Add ₹ 1500 as making charges.How much GST and rate of tax applicable.Which rate in Gold ornaments and which rate in Making Charges.

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7 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 28 July 2019

As per Section 8 of CGST Act
Can charge @ 3 % on Goods & Services as Jewellery being Principal supply under Composit Supply

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subhagan sreerangam (7054 Points)
Replied 28 July 2019

It is a Regular taxpers

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 28 July 2019

yes Regular taxpayer.

it's composit supply , means a ,supply consist of 2 or more supplies of goods or services or both ,, one of which is principal supply.

Note : don't mix the composit supply with Composition dealer makes supply.
Refer section 8 & 2(3) of CGST Act

subhagan sreerangam (7054 Points)
Replied 28 July 2019

Ok thanks for sharing the valuable information.

Shivam RC (Student) (23683 Points)
Replied 28 July 2019

Sir that means there is no separate GST Rate on Making Charges of Gold ornaments ???

The 3% GST Rate on Gold will also be applicable for making charges on the principle of Composite Supply ???

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 28 July 2019

Yes.......correct