The Goods and Services Tax has changed the indirect taxation face of India, subsuming bringing various indirect taxes under one roof. The rate charged over hallmark charges is one of the most important concepts related to GST. In this article, we will cover the GST rate on hallmark charges, its implications, and also the importance of GST registration.
What are Hallmark Charges?
Hallmarking is a process of certifying the purity of a precious metal like gold and silver. The Bureau of Indian Standards is responsible for hallmarking to prove that the used metal has met a certain standard. Hallmark charges are the fees charged by BIS for such certification.
GST Rate on Hallmark Charges
The hallmark charges attract an 18% rate of GST. This rate is for fees levied by the BIS against hallmarking of precious metals. This GST rate on hallmark charges must be paid by every business dealing with gold and silver.
How Hallmark Charges will be Impacted by GST
The hallmarking charge has a massive share in the GST rate of businesses dealing with precious metals. Therefore, it becomes very necessary for such a business to know the rate and its applicability to avoid any penalty or fine.
Importance of GST Registration
GST registration holds prime importance for the businesses dealing with the precious metals, particularly because it helps them in availing input tax credits, filing of GST returns, and avoiding penalties and fines.
Conclusion
In a nutshell, the hallmark charges, which are connected with the turnover value of precious metals, are subjected to an 18% GST rate. Any business dealing with these metals needs to be aware and comply with this rate. Furthermore, one should have GST registration; otherwise, there can be a penalty or fine for that. If you are looking to get expert help on GST registration, then consider consulting some professional service like E-StartupIndia.
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