When you think of gold jewellery, you picture stunning gold necklaces and bracelets, each gleaming with a story of unique artistry and charm. But, beyond the sparkle, there's a key factor every buyer should understand about GST on gold in India.
GST has importance on both the cost and the buying process and is something everyone should be aware of. In this blog, we'll talk about everything about the GST on gold jewellery, from basic rates to how it affects your purchase decisions.
Understanding GST on Gold
GST is a unified tax implemented across India to simplify the taxation system. It reduces numerous previous taxes into a single system, making taxation more effortless to manage and transparent for consumers and businesses alike. For gold lovers, it's essential to learn how this tax applies to your precious gold jewellery.
What Is There a GST On Gold?
GST on gold in India is a necessary element that buyers must understand before buying. The tax is levied not only on the metal but also on the making charges - costs associated with manufacturing the jewellery.
Table Of GST Rates On Gold
|
Items |
GST Rate |
|
Gold Bars |
3% |
|
Gold Jewellery |
3% |
|
Gold Coins |
3% |
|
Making Charges |
5% |
Gold is subject to a fixed 3% GST, plus an extra 8% tax on charges. Now in response to objections from citizens, the GST on making charges was later reduced to 5%.
Pre and post-GST on Gold Jewellery
There is a difference between GST on gold ornaments and precious and semi-precious stones used in it. This would help you to be aware of this difference to ensure you are not taxed on the stones. So, the 3% tax is on the metal value, and the 5% is on the making charges.
Previously, the industry charged a Value Added Tax (VAT) of 1.2% and 1% as Excise Duty over and above the Customs Duty. But, you were not taxed on the making charges. If you sell old gold jewellery to buy new ones, you are mandated to pay a cost of 3%.
How To Calculate GST On Gold Jewellery?
To calculate GST on gold jewellery, you must consider GST on both - gold metal and the making charges. For example:
|
Price of Gold Jewellery |
Before GST |
After GST |
|
The price of 10g of gold (22 carat) |
66,767 |
66,767 |
|
Custom duty |
6,676.70 |
6,676.70 |
|
Service Tax of 1% |
733.44 |
0 |
|
GST of 3% |
0 |
2,100.01 |
|
VAT of 1.2% |
880.32 |
0 |
|
Making charges above 10% |
6,676.70 |
6,676.70 |
|
GST on making charges of 5% |
0 |
3338.4 |
|
Total cost |
74,734.16 |
76,554.25 |
So, here’s how you calculate GST on gold jewellery. At GIVA, we ensure that you have the best quality 14k and 18k gold jewellery with unique designs.
GST Rates For Gold Ornaments
When buying gold ornaments in India, knowing about GST rates becomes an important part. The GST is charged at a standard rate of 3%. Plus, making charges, which cover the cost of craftsmanship, is charged at 5%. Buyers need to note these rates as they affect the overall cost of the gold jewellery.
GST Exemptions For Gold
There are no direct exemptions on GST for purchasing gold ornaments in India. Gold does not fall under the exemption category, unlike essential commodities and some educational services that might be exempt or charged at a lower rate. This means every purchase of gold jewellery is fully taxable under the current GST laws.
GST Impact On Gold
GST has a great impact on gold jewellery in India. One of the main effects has been the increase in transparency in both the purchase and sale of gold. GST has unified the tax rates across all Indian states, which formerly varied due to different state taxes like VAT.
Adorn Yourself with GIVA Gold Jewellery
Learning about GST on gold in India allows you to make investments, and get transparent deals. At GIVA, we offer a wide range of gold jewellery that comply with GST regulations to ensure you get the best value. Our collection meets diverse tastes and preferences.
So, experience the craftsmanship and choose GIVA fine jewellery that makes a perfect heirloom piece for generations to come!