## Why is gold GST low?

The GST for gold was fixed at 3%, with an additional 8% tax levied on making charges.

The tax on the making charge was then reduced to 5% due to concerns raised by various groups.

At present, gold prices are seeing a rise due to unstable markets in spite of the additional tax burden..

## What is the tax on gold in India?

3%With the introduction of Goods and Services Tax (GST), the customer is required to pay at the rate of 3% on the value of the gold jewellery including making charges. Taxation on the sale proceeds from gold depends on the duration for which you have held it.

## Why is tanishq gold so expensive?

The business model of Tanishq is predominantly around ‘making charge’ levied over cost of gold. … Similarly, when customers exchange their old gold ornaments, they could pay as per 20 karat even though gold is of 22 karat purity. 3. Further, they deduct 8-10% from the value of exchanged gold.

## How is GST calculated?

GST can be calculated simply by multiplying the Taxable amount by GST rate. If CGST & SGST/UTGST is to be applied then CGST and SGST both amounts are half of the total GST amount. For example: GST including amount is Rs. 525 and GST rate is 5%.

## How do you calculate GST in gold?

Price of 9.60 grams’ gold chain = Rs 2,735 times 9.60 grams = Rs 26,256. Add making charges, suppose 10%, which comes to Rs 2,625.60 (10% of Rs 26,256) Total price of gold jewellery = Rs 28,881.60. Add GST at 3%: Rs 866.44 (3% of Rs 28881.60)

## How do you calculate the percentage of gold?

This calculation is straightforward: Just divide the karat number of your jewelry by 24 and multiply by 100. For example, if you have determined that a gold item is 18 karats, dividing 18 by 24 gives you 0.75, which is equal to 75% gold content.