New Delhi: The Centre is considering a lower three per cent GST rate on gold even as industry sticks to its demand to keep it at a lower rate of 1.25 per cent. The proposal would be taken up in the GST Council which is scheduled to meet on November 24-25 to resolve pending issues for implementation of the indirect tax reform from next fiscal.
“It has not been finalised as discussions are on. There is a suggestion that gold be taxed at three per cent. It will be considered by the GST Council in its next meeting,” an official source said. The GST Council had in its last meeting cleared a four-tier goods and services tax structure of 5, 12, 18 and 28 per cent in the new regime. It suggested a 4 per cent levy on gold but a final decision was put off due to difference of opinion on it among states. In earlier discussions, a higher rate of five per cent had also been suggested.