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For those interested in understanding who is impacted and required to pay GST on the sale of old cars, CNBC provides a simplified explanation.
Buy gold coins/bars for pure investment.
Buy jewellery for personal or family use with emotional value
Aspect | Gold Coin | Gold Jewellery |
---|---|---|
Form | Standardised coin/bar (24K, often 999 purity) | Ornaments, bangles, necklaces, rings, etc. (often 22K, 18K) |
Purity | Higher purity (close to 24K) | Lower purity due to alloy (to add strength & design) |
Making Charges | Minimal (only minting charges, ~1–2%) | High making charges (5% – 25% depending on design & labour) |
GST on Purchase | 3% GST on gold value + 5% on making charges (if any) | 3% GST on gold value + 5% on making charges (higher impact due to labour charges) |
Liquidity | Easy to sell at bullion dealers, banks, jewellers | Easy to sell but resale value reduced due to making charges deductions |
Resale Value | Close to market rate (deduction mainly for mint premium) | Resale often at scrap value of gold + deduction for impurities & wastage |
Use Case | Pure investment | Dual purpose – investment + personal use |
Storage & Portability | Compact, easy to store | Bulky, needs safe storage |
Capital Gains Tax | LTCG after 3 years → 20% with indexation benefit | Same as gold coins (treated as “capital asset”) |
Wealth Tax | (Currently abolished, but earlier applicable) | Same as gold coins |
TDS | No TDS on purchase (except if bought in cash > ₹2 lakh, PAN mandatory) | Same rule applies |
Gold Coins → Better for pure investment due to higher purity, lower making charges, and better resale value.
Gold Jewellery → Better for use + emotional value, but not efficient as an investment (loss of value on resale due to high making charges).
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