CHENNAI: The PMK on Friday asked Union finance minister Arun Jaitley to exempt gold and gold jewellery, which are bought by low income and middle class people to meet their compulsory needs, from the GST.
Welcoming the decision of the GST Council meeting on Thursday to exempt 29 handicraft items from GST, the party wants the central government to extend the same benefit to a few other handicraft items, as well as the GST on gold and gold jewellery.
Recalling that prior to the GST, 15 states had totally exempted tax on handicrafts and only eight states had a maximum of 5% tax, PMK founder S Ramadoss said the implementation of the GST saw handicrafts come under the highest 28% tax bracket.
PMK Lok Sabha member Anbumani Ramadoss had submitted a memorandum to the Union finance minister stating that the high rate of tax under the GST had hit sale of handicrafts, thereby affecting the livelihood of the artisans.
Likewise, while the GST on diamond and precious stones has now been brought down to 0.25% from 3% earlier, it is puzzling why the government is hesitant to extend the same benefit to gold and gold jewellery, the PMK founder asked.