How Gst Is Calculated On Gold
Normally price of jewellery is calculated based on prevailing price of gold as per purity making charge weight of gold and gst.
How gst is calculated on gold. Gst on purchase of gold. 2 735 price of 9 60 grams gold chain rs 2 735 times 9 60 grams rs 26 256 add making charges suppose 10 per cent which comes to rs 2 625 60 10 of rs 26 256 total price of gold jewellery rs 28 881 60 price of 9 60 grams gold chain. No gold is not exempt under gst law and thus is subject to gst.
When calculating gst taxpayers must be aware of the gst rates applicable to different categories. Gst on raw gold. This is why often the making charges tend to vary among jewellers and influence the gst on gold coins and ornaments.
Under the new tax structure the rates applicable are 5 12. Gold and also the service i e. Gst rate on gold 1.
In other words all gold and gold related jewellery would be taxed at a flat rate of 3 which would be borne by the end consumer. Price of jewellery gold rate gram x weight of gold in jewellery making charge gram gst on jewellery plus making charge. How to calculate gst on gold.
Clearmytax editorial team is gold exempt. How is gst calculated on gold jewellery. Typically gst on gold jewellery is either in the form of a fixed charge or as a fixed percentage on gold value.
Remove gst gst amount original cost original cost 100 100 gst net price original cost gst amount the above gst rate calculator for gold including gold plated with platinum unwrought or in semi manufactured forms or in powder form in india will help you to calculate goods and services tax rate for both when gst is added and removed. Price of 1 gram of gold rs 27 350 divided by 10 rs. For purchasing 25 grams of gold you will have to pay.