There is no doubt over the fact that GST – Goods and Service Tax has had its fair share of contributions in changing the taxation system in our country. Moreover, GST also revolutionized the price of gold jewellery with significant changes that also led to an increase in bills with the jeweller. Being a symbol of wealth and status, people consider it secure however while purchasing it, they have no idea about how the jeweller calculates the 18k gold GST rate. So, today, we are here to help you understand GST on gold and how its rate is affecting the current price of gold in 2024.
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Explain the concept of GST on Gold:
To ensure uniformity in the taxation system in our country, the government brought GST and it’s the tax we have to pay for buying, selling, and importing gold. Earlier there was a list of taxes that we had to pay on every deal but after GST, we have a clear idea of what we must pay as tax.
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Impact of GST on gold
GST on Gold: The Basics
GST on Gold Value: It is the tax that is calculated on the market price of gold.
GST on Making Charges: It is the tax levied upon the cost made for making gold into jewellery.
Current GST Rates
Gold Value: The GST on gold is 3% of the total value of gold.
Making Charges: The GST rate is 5% on making charges.
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Note to remind:
Whether you want to know GST on gold in Chennai or you are calculating GST on gold in Delhi, it is 3% in all states of India and 5% on the gold-making charges
What Buyers Must Know about the effect of GST on gold
Gold is an auspicious metal and you will always find people buying beautiful pieces of gold jewellery, gold earrings, gold bracelets, and gold chains from their favorite stores. Therefore, when purchasing your gold piece, it is essential to identify how GST is impacting the cost of gold in 2024.
Transparency in Pricing:
The trade with the GST has made the trade of gold items more transparent. As opposed to the current approach where different indirect taxes are levied on products, GST ensures that customers will be able to determine how much taxes they are paying for particular items.
Read More: Why Gold Matters:Everything You Need to Know?
Impact on Investment
To the investors, the new tax policy adds to the price of the metal with the buyer paying the gold at a price margin just above the spot. This must be considered when making an investment decision regarding the selling price because the resale value of the gold will not amount to GST paid during purchase.
Effect on Jewellery Prices
From the perspective of an individual purchasing jewellery such as gold, GST helps to increase the price of these gold ornaments. The standardized rate helps consumers to make comparisons on the price between various jewellers.
GST price on gold ornaments
Amazing Tips for Gold Buyers
1. Always Compare Prices
Do not forget to compare the various prices in different jewellers and try to see if the prices quoted include GST. If you are paying the tax, you are making the right deal for yourself. On the other hand, if you think you can skip the GST and end up paying less to the jeweller, let me tell you, you are helping the jeweller to get more profit from this deal.
2. Negotiate Making Charges
Making charges also attracts the GST hence it's only wise to bargain for very low gold-making charges to reduce your taxes. You can use your loyalty point or any referral coupons that will help you save more money in your pocket.
3. Understand the Breakdown
Request a detailed statement that itemizes the cost of buying the gold, making charges, and GST to avoid fraud. If your jeweller denies you an itemized jewellery GST bill, avoid the purchase. At GIVA, we make sure that our customers get the itemized bill for all the gold jewellery they purchase from us. We believe in deals that are worth celebrating for life.
4. Buy During Offers
There are jewellers who are willing to reduce or make lower charges during a festive season or a promotional campaign that helps to reduce the cost of GST. You can wait for such a period and get details of all the possible offers to choose one that is in best of your interest.
Conclusion:
Introducing GST on gold has had a huge impact on how gold sells and how gold jewellery is sold. On the other hand, it increases the overall cost of taxation for a country but also ensures that taxation is more transparent and can be implemented as standards set by the central government. Being aware of the GST on gold and its use will make it easier for you to make sound financial investments when purchasing gold.
GIVA: We believe your desires should never compromise
At GIVA, we are always there to be your companion in the journey of buying this precious metal. For this, we have tried our best to offer you an exciting collection of gold and silver jewellery that is made by brilliant artisans keeping your wishes and budget in mind. We aim to help people fulfill their desires even when the goal rates are constantly soaring high in the market. So, visit us now and add your favorites to the cart before the stock is over!
