Buying gold is a cherished tradition in india, especially during weddings and festivals. But have you ever wondered why your gold bill always ends up higher than the actual price of the metal? Here’s a detailed breakdown of GST on gold jewellery, making charges, and what makes the final price tick up.
1. The Current GST on Gold: 3% Across the Board
As of now, the GST on gold jewellery, coins, and bars in india is 3%, split equally as 1.5% Central GST (CGST) and 1.5% State GST (SGST). This means that no matter what form you buy gold in, a mandatory 3% tax is applied. So, whether you’re purchasing a gold bar for investment or a necklace for your wedding, you will need to pay this tax.
2. Making Charges Add Up: 5% GST Extra
Gold jewellery is more than just the metal itself. The intricate designs and craftsmanship come with a making charge, which is an additional cost over the base gold price. On this making charge, a 5% GST is levied. This is why even if gold prices seem reasonable, the final bill can be surprisingly high.
3. Why Your gold Bill Is Higher Than the Market Price
Many buyers assume that the jewellery price is determined only by the weight and current rate of gold. However, the total cost includes:
- Base price of gold (weight × per gram rate)
- Making charges for the jewellery design
- GST on both the gold and making charges
This combination is what causes the final bill to be significantly higher than just the raw gold price.
4. A Real-Life Example: Necklace Purchase
Let’s understand this with a practical example:
- Weight of gold necklace: 27.109 grams
- Current gold rate: Rs9,845 per gram
- Base price: Rs2,66,888
- Making charges: Rs57,380
Sub-total: Rs3,24,269
GST (3%): Rs9,728
Final bill: Rs3,33,997
As you can see, the GST and making charges can add thousands of rupees to your purchase.
5. Why Knowing the Breakup Matters
Understanding how your gold bill is calculated is crucial. Many buyers focus only on the market gold rate and miss out on additional costs. Checking the rate per gram, making charges, and GST helps you make an informed decision and avoid surprises.
6. Timing and Market Rates Are Key
Gold prices fluctuate daily. The GST and making charges remain constant percentages, but the base price changes with market rates. Planning your purchase when gold rates are lower can save you a significant amount, especially during festive seasons.
7. The Bottom Line
- 3% GST on gold (CGST + SGST)
- 5% GST on making charges
- Total price = Base price + Making charges + GST
Being aware of these charges ensures that you can budget effectively and make a smarter purchase. This festive season, don’t just look at the glitter of gold—look at the fine print too!
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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