GST on Gold and Silver: The prices of gold and silver are increasing rapidly at this time. A significant increase is being observed in the price of gold. The phase of change in the prices of gold and silver continues. Yesterday, the prices of both were increased simultaneously. Today, only the price of gold has increased. If you want to invest in gold and silver, then avoid buying jewellery.
The demand for gold and silver increases significantly on every festival, wedding, and special occasion. Especially at the time of weddings, people purchase a significant amount of gold jewellery. But whenever a customer buys gold or silver, its price is not only determined by the market price, but the tax imposed on it also has a direct impact on people’s pockets. Currently, the Goods and Services Tax (GST) applies to gold and silver.
According to government rules, 3% GST is levied on gold and silver. If the market price of gold is Rs 1,08,000 per 10 grams, then you will have to pay an additional Rs 3,000 as GST. Similarly, 3% GST rate is applicable on silver as well. Apart from this, if you have gold jewellery made, you will also have to pay making charges in addition to GST. 5% GST is charged as making charges. In such a situation, buying gold jewellery is no longer easy.
GST rates applicable on gold and silver-
Gold 3%
Silver 3%
Making charge on jewellery- 5%
For example, suppose today you are going to get gold jewellery made and the price of 22 carat gold in the market is Rs 108000 per 10 grams, then GST and making charge will be added on it like this:-
Base price of gold: ₹108000
3% GST: ₹3000
Making charge (10%): ₹10,000
5% GST on making charge: ₹500
Total price = ₹108000 + ₹3000 + ₹10,000 + ₹500 = ₹1,21,500