GST ON GOLD

GST on gold in various forms is discussed in this article. Other than GST, other taxes applicable on gold are service tax, excise duty and several other indirect taxes charged on domestic transactions. While GST on gold is applicable at the same rate all over India, different rates are applicable to gold jewellery, making charges, purchase of physical gold and purchase of digital gold.

• On Purchase of Physical gold:- 

GST on gold purchase in India attracts 3% GST (1.5% CGST + 1.5% SGST) rate on the value of gold. So, if the value of gold being purchased is Rs. 10,000 the total GST payable on the transaction will be Rs. 300. This 3% GST rate on gold is applicable to not only gold jewellery purchases but also to the purchases of gold coins or bars.

• On Gold Jewellery making charges:- 

When gold jewellery making charges are shown separately on the purchase bill, a GST rate 5% i.e. SGST of 2.5% + CGST of 2.5% on the making charges only. The same 5% GST is applicable in case of charges incurred for repairing gold jewellery in India. So, if making or repair charges for your gold jewellery is Rs. 1000, the GST payable for the service provided will be Rs. 50.

• On Digital Gold Purchased:- 

Currently gold investments in India made into digital or paper gold incurs a GST rate of 3% on the amount invested. So, if a digital gold investment of Rs. 5000 is made, 3% GST will be deducted and the remaining Rs. 4850 will actually be invested. This is a one-time charge applicable at the time of investment. GST is currently not applicable to Gold Exchange Traded Funds (ETFs) or Gold Mutual Fund purchases in India.