GST on Redesigning Gold Jewellery<\/h2>\n\n\n\n
In case you give your jewellery for redesigning then the GST on the making charges is 18%. There is no GST on the gold as the gold has been given by you. If we take the same example as above where you have given a 10 gram jewellery for redesigning, the GST would be 18% of Rs 4,000 = Rs 720.<\/p>\n\n\n\n
Total cost of redesigning (including GST) = Rs 4,000 + 720 = Rs 4,720<\/p>\n\n\n\n
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GST on Gold when Investing<\/h2>\n\n\n\n
You can invest gold in physical form (like coins, bars, etc) or digital form (like ETFs, Mutual Funds or Sovereign Gold Bonds). The GST varies on each mode of investment.<\/p>\n\n\n\n
Should you Invest in Gold?<\/strong><\/h4>We looked at more than 55 years history of gold to see if its a good idea to invest in Gold. We concluded that its more volatile than perceived but investing in long term may provide you with more stable returns. You can look at the complete analysis and our conclusion here – Looking at Gold Price History in India \u2013 Should you Invest in Gold?<\/a><\/p><\/div><\/div>\n\n\n\nGST on Gold – Investment in Physical Form<\/h3>\n\n\n\n
If you buy gold for investment in Physical Form like coins or bars, its similar to buying gold in form of jewellery. The GST would be levied at the rate of 3% on the value of gold and making charges. So for investing in 10 grams gold<\/a>, which would cost Rs 40,000 – with making charges and GST it becomes Rs 45,320. So an extra Rs 5,320 which is more than 13%. This is one reason investing in Physical gold is a bad idea.<\/strong><\/p>\n\n\n\nGST on Gold Investment in ETFs & Mutual Funds<\/h3>\n\n\n\n
When you buy Gold ETFs or Gold Funds of Funds the mutual funds have to back up the investment by buying so much gold in physical form. They too are levied GST of 3%. However, as GST can be used as input credit, most of this GST cost is set off by Mutual Funds and the GST paid on gold comes back to the investors. So practically there is no additional GST cost to investors. <\/p>\n\n\n\n
GST on Gold Investment in Sovereign Gold Bonds<\/h3>\n\n\n\n
There is no physical buying of gold in case of Sovereign Gold Bonds \u2013 so there is no question of GST here.<\/p>\n\n\n\n
Know about the latest issues of Sovereign Gold Bonds<\/strong><\/h4>Sovereign Gold Bonds are one of the better ways to invest in gold. It’s safe, backed by government of India and you need not be worried about purity of gold or storage. The icing on the cake is you get interest paid on your investment. You can buy these Sovereign Gold Bonds from NSE\/BSE but the liquidity is a problem. So it’s a good idea to subscribe to latest issue of Sovereign Gold Bonds<\/a> which comes almost every month.<\/p><\/div><\/div>\n\n\n\nHow does GST on Gold impact you?<\/h2>\n\n\n\n
We looked at more than 55 years history of gold to see if its a good idea to invest in Gold. We concluded that its more volatile than perceived but investing in long term may provide you with more stable returns. You can look at the complete analysis and our conclusion here – Looking at Gold Price History in India \u2013 Should you Invest in Gold?<\/a><\/p><\/div><\/div>\n\n\n\n If you buy gold for investment in Physical Form like coins or bars, its similar to buying gold in form of jewellery. The GST would be levied at the rate of 3% on the value of gold and making charges. So for investing in 10 grams gold<\/a>, which would cost Rs 40,000 – with making charges and GST it becomes Rs 45,320. So an extra Rs 5,320 which is more than 13%. This is one reason investing in Physical gold is a bad idea.<\/strong><\/p>\n\n\n\n When you buy Gold ETFs or Gold Funds of Funds the mutual funds have to back up the investment by buying so much gold in physical form. They too are levied GST of 3%. However, as GST can be used as input credit, most of this GST cost is set off by Mutual Funds and the GST paid on gold comes back to the investors. So practically there is no additional GST cost to investors. <\/p>\n\n\n\n There is no physical buying of gold in case of Sovereign Gold Bonds \u2013 so there is no question of GST here.<\/p>\n\n\n\n Sovereign Gold Bonds are one of the better ways to invest in gold. It’s safe, backed by government of India and you need not be worried about purity of gold or storage. The icing on the cake is you get interest paid on your investment. You can buy these Sovereign Gold Bonds from NSE\/BSE but the liquidity is a problem. So it’s a good idea to subscribe to latest issue of Sovereign Gold Bonds<\/a> which comes almost every month.<\/p><\/div><\/div>\n\n\n\nGST on Gold – Investment in Physical Form<\/h3>\n\n\n\n
GST on Gold Investment in ETFs & Mutual Funds<\/h3>\n\n\n\n
GST on Gold Investment in Sovereign Gold Bonds<\/h3>\n\n\n\n
Know about the latest issues of Sovereign Gold Bonds<\/strong><\/h4>
How does GST on Gold impact you?<\/h2>\n\n\n\n