2 Oct 2019
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/Service||Previous GST Level||New GST Level|
|Cut and polished semi-precious stones||3%||0.25%|
|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.