How would GST impact gold prices? All you need to know

Gold prices to go up after GST/ AFP Photo

New Delhi: As implementation of Goods and Services Tax, which came into effect from Friday midnight has affected the prices of various goods differently, it is likely to affect the gold prices negatively, which will in-turn make gold costlier. The amount of tax levied on gold previously was 2%; i.e 1% of value added tax (VAT) and 1% excise duty; whereas after the implementation of GST, the total tax would be 3%; therefore the gold would get costlier by 1%. In other words the tax on gold would increase by 1%. ABP News spoke to a gold shop owner in Raipur, who said, “of the 3% GST that would be levied on gold, 1.5% would be state GST and 1.5% would be central GST”. He further added that if a person gives his own gold to get jewellery manufactured by the goldsmitch, then he would have to pay a total of 5% GST on labour charge in place of 3%.