There Will Be GST On Selling Old Gold & Jewellery ? Know What New Order Says…
New Delhi: If you are planning to buy gold jewellery after the fall in gold prices, then this news is very important for you. According to news agency PTI, soon GST can be imposed on selling old gold and jewellery. Kerala Finance Minister Thomas Issac said on Friday that a proposal to impose a three per cent Goods and Services Tax (GST) on the sale of old gold and jewellery in a group of state finance ministers (GoM) has almost been agreed.
Let’s know how much tax has to be paid for buying and selling gold.
The price of gold varies according to the weight and carat of jewellery in the market. But, on buying gold jewellery, there is a Goods and Services Tax (GST) of 3 percent on its price and making charge. You pay for the jewellery in any mode, you will have to pay 3 percent GST.
How much tax is there on selling? – Hardly anyone knows that besides buying gold, selling gold also has tax. While selling, it is seen how old is your jewellery, as tax will be applicable to it according to that period. Short-term capital gains (STCG) and long-term capital gains (LTCG) tax will have to be paid on gold.
Short term capital gains tax will be levied on gold when you sell jewellery within 3 years from the date of purchase. Tax will be deducted according to the income tax slab on the earnings you have made on selling jewellery.
For selling jewellery of 3 years or more, tax will have to be paid as per Long Term Capital Gain (LTCG). According to LTCG, the tax rate will be 20.80 percent. In the last budget itself, the cess on LTCG has been increased from 3 percent to 4 percent. Cess is included in the tax rate. However, till then, LTCG used to be 20.60 per cent on selling gold.