A big decision has been taken by the government to change the GST system. Now most of the goods are going to be cheaper in the new structure. In such a situation, this festive season, the question is coming to the minds of the people buying gold and silver whether the GST (GST Reforms impact on Gold and Silver Rate) rate is going to be reduced on gold and silver as well. Here we will tell you how much GST you will have to pay on buying gold and silver jewelery. Along with this, we will also tell how the making charge and tax are levied on buying gold jewelery.

Let us tell you that the old rates will remain applicable on gold and silver for the time being, that is, 3% GST will have to be paid on gold and silver, and 5% GST on the making charge of jewelery.

Why does the bill come more than the actual price of gold?

Buying gold jewelery on a wedding or any special occasion is a tradition of almost every Indian family. But when you go to the showroom, why does the bill become more than the actual price of gold? This question often comes to mind for people when buying jewelery.

Actually, apart from the basic price of gold jewellery, both the making charge and GST (Goods and Services Tax) are added. Only then do you get the final bill. In which the final price increases.

How much GST is levied on gold

Currently 3% GST is levied on gold jewellery in India. This includes 1.5% Central GST and 1.5% State GST. This tax is levied on everything, be it gold jewellery, coins, or bars. That is, whether you buy a gold bar, coin, or jewellery, it is not possible to avoid this tax.

GST game on making a charge

When you buy a necklace or earrings, it does not include only the price of gold. Jewellers add a making charge separately to make it. 5% GST is levied on this making charge, which becomes a part of your final bill. Let us understand this with a simple example.

Suppose you bought a gold necklace set from Tanishq whose total weight is 27.109 grams. As per the rate of gold ₹9845 per gram, its base price was approximately ₹2,66,888. After this, charges of ₹57,380 were added. The sub-total of both was ₹3,24,269. Now 3% GST, i.e., around ₹9,728, was added to it. In this way, the final bill for your jewellery came to ₹3,33,997.

Why is it important to know this calculation?

Many people think that the price of jewellery is decided only by the rate of gold, whereas the reality is that due to making charges and GST, your jewellery becomes expensive. Therefore, whenever you buy gold, definitely see the breakup of rate, making charge and GST. The prices of gold and silver keep changing every day. In such a situation, it is very important to have the right time and correct information while buying jewellery.

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