How to Calculate GST for Gold

Gold Investment
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how to calculate gst for gold?

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Hi,
When I first started buying gold jewelry, I was confused about how GST was calculated. Later, I realised it’s actually quite simple once you break it down. The total GST you pay on gold jewelry isn’t charged on just one amount; it’s split between the gold value and the making charges.

Here’s how:

  • The GST on gold value is 3% of the total gold price.
  • GST on making charges is 5%.

Let me give you an example-
I recently bought gold jewelry worth ₹1,00,000 and the jeweller added ₹10,000 as making charges, here’s what was the GST on the gold :

  • GST on gold was 3% of ₹1,00,000 i.e. ₹3,000
  • GST on making charges was 5% of ₹10,000 i.e. ₹500

So, the total GST I paid on that gold was ₹3,500 making my final price ₹1,13,500 .

Whenever you’re calculating the GST on gold add 3% on the gold value and 5% on the making charges. Once you know this, you can easily estimate the final price before buying.