3% on gold value + 5% on making charges. Hallmarking (HUID) mandatory. Old gold exchange. SGB/ETF avoid GST for investment. Physical only for cultural use.
GOLD JEWELLERY GST: (1) 3% GST on GOLD VALUE. (2) 5% GST on MAKING CHARGES. (3) Combined effective ~3.5-4% on total (depends on making %). EXAMPLE: ₹1L gold + ₹15K making. (a) Gold GST: 3% × ₹1L = ₹3K. (b) Making GST: 5% × ₹15K = ₹750. (c) Total GST ₹3,750. (d) Bill ₹1,18,750. PLUS hallmarking charges. STRATEGIC: lower making charge designs = lower GST.
OLD GOLD EXCHANGE: (1) Exchanging old jewellery for new: GST on NET value (new - old gold). (2) OLD GOLD sale to jeweller: if individual (not business), NO GST on sale. (3) NEW purchase: 3% + 5% making on full new piece typically. (4) Some jewellers adjust old gold value. STRATEGIC: exchange old gold to reduce cash outflow. GST on making charges of new piece unavoidable. Keep purchase invoices for capital gains tracking.
DIGITAL GOLD + COINS GST: (1) DIGITAL GOLD (PhonePe, Paytm, MMTC): 3% GST on purchase. (2) GOLD COINS/BARS: 3% GST (no making charges for plain coins, or minimal). (3) SGB (Sovereign Gold Bond): NO GST (it's a bond, not physical). (4) GOLD ETF: NO GST (demat units). (5) GOLD MUTUAL FUND: NO GST. STRATEGIC: for INVESTMENT, SGB/ETF avoid 3% GST + making charges. Physical jewellery only for use/cultural, not pure investment.
HALLMARKING (mandatory since 2021): (1) BIS HALLMARK required for gold jewellery sale. (2) HUID (Hallmark Unique ID) 6-digit. (3) Purity marking (22K, 18K, 14K). (4) Hallmarking charge ~₹45 + GST per piece. (5) PROTECTS buyers from purity fraud. CHECK: (a) BIS logo. (b) Purity (caratage). (c) HUID number. (d) Jeweller's mark. STRATEGIC: only buy hallmarked gold. Verify HUID on BIS app. Resale easier with hallmark.
GOLD STRATEGY: (1) INVESTMENT: SGB (no GST, 2.5% interest, tax-free maturity) > ETF (no GST) > physical (3% GST + making). (2) JEWELLERY (use): accept 3% + 5% making GST. (3) NEGOTIATE making charges (varies 5-25%). (4) HALLMARKED only — verify HUID. (5) KEEP INVOICES for capital gains (LTCG 12.5% after 24 months on physical). (6) OLD GOLD EXCHANGE reduces cash outflow. (7) DIGITAL GOLD: convenient but 3% GST + spread. (8) WEDDING/cultural: physical. INVESTMENT: SGB/ETF. (9) ₹2L+ cash purchase: PAN mandatory + 269ST cash limit. STRATEGIC: separate investment (SGB) from consumption (jewellery).