Gold is quite a popular purchase both from consumption and investment perspective. But do you know what is the GST in Gold – How much tax you pay while buying or investing in Gold? The post tells you different situations and how Gold is taxed.
GST on Gold when buying New Gold Jewellery
Government levies 3% GST on Gold in case you buy a new gold Jewellery, coins or in any other physical form. This levy is on both – cost of the gold and the associated making charges. Here is an example:
If you buy a gold jewellery having weight of 10 grams and making charges of 10%, here is how the calculation of GST would work out:
- Cost of Gold (assuming Rs 40,00 per gram) = Rs 40,000
- Making charges @ 10% of Gold Cost = Rs 4,000
- GST Charged = Rs 1,320 (3% of Rs 44,000)
- Total cost of Purchase (including GST) = 40,000 + 4,000 + 1,320 = Rs 45,320
GST on Redesigning Gold Jewellery
In case you give your jewellery for redesigning then the GST on the making charges is 18%. There is no GST on the gold as…