State government will take up the issue to GST Council as the semi-precious stone is attracting 28% tax
The state government will take up the issue of 28% GST rate on red coral popularly known as moonga with the GST council on August 5.
Red coral is the only semi-precious stone which is attracting GST at this rate while the rest of the gem stones the tax is just 3%.
The GST council is of the view that moonga is a fossil.
The jewellers, worried about the high rate of tax are whining while the financial experts say that instead of selling moonga domestically, jewellers should now start exporting it to nullify the effect of GST.
Several representations have also been made to the state’s finance department regarding this and that is why state has approached the GST council on this issue.
Notably, in Jaipur “worked moonga” is very popular as it’s used in making ornaments and also known for its astrological importance. The worked moonga is typically the polished version of the rough stone. Moonga stone is imported in Jaipur and further processed.
Jewellers question the different rate of moonga as according to them it just falls in the same semi-precious stone family.
However, the officials of department of finance inform that while emerald and such precious stones etc are included in the chapter of stones, moonga has been considered as a fossil.
“Moonga is not classified as stone , it’s fossil and therefore charged differently,” said a senior official of department of finance.
Notably, if the jewellers start exporting “worked moonga” then it will attract a duty of 5% which they can claim as a refund when exported.
Sources informed that apart from the issue of rate of GST on moonga, rate of tax on marble and textile will also be taken up in the GST council meet.
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