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INDIA: GST Revisions Likely to Impact on Business of Hong Kong Importers/Exporters

The Goods and Service Tax (GST) on several products/services of relevance to Hong Kong suppliers and investors was revised as of 1 October. While, in many instances, the payable duty was reduced, sometimes drastically, in several other categories it was actually increased.

A brief summary of the changes most relevant to Hong Kong businesses can be found in the table below:

Product/ServicePrevious GST LevelNew GST Level
Cut and polished semi-precious stones3%0.25%
Slide fasteners18%12%
Wet grinders12%5%
Caffeinated drinks18%28%
Hotel Rooms (INR1,001-2,500, US$14-36)12%12%
Hotel Rooms (INR2,501-7,500)18%12%
Hotel Rooms (INR 7,500+)28%18%

 

It is also worth noting that, in a bid to boost jewellery and gem exports, GST liability has been waived on all imports/exports of silver and platinum conducted by certain government-approved exporters (“nominated agencies”). Furthermore, Diamond India, a prominent nominated agency, has now been approved to import GST-exempt gold, silver and platinum for use by jewellery-related businesses.

Full details on the latest GST rate revisions can be accessed here for goods and here for services.

Content provided by Picture: HKTDC Research
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