Gold exchange on Tanishq - GST or not

[ranisi]

I am planning to exchange my old gold for some new gold jwellery preferably plain gold at Tanishq this Dussehra or Diwali. I have got Tata neu infinity card.

I understand it gives 5% cashback on tata brands including Tanishq.

Questions:
1) Will I have to pay GST on new gold I am getting in exchange of my old gold?
2) Will it get 5% cashback if I pay for any amount required in this exchange at Tanishq? Mainly wanted to know in this 2nd questions is - does the cashback work for exchange of gold also or only on new gold purchase?

Anyone who has done this recently or have some experience on it, please guide.

 

[Raghav2006]

I am planning to exchange my old gold for some new gold jwellery preferably plain gold at Tanishq this Dussehra or Diwali. I have got Tata neu infinity card.

I understand it gives 5% cashback on tata brands including Tanishq.

Questions:
1) Will I have to pay GST on new gold I am getting in exchange of my old gold?
2) Will it get 5% cashback if I pay for any amount required in this exchange at Tanishq? Mainly wanted to know in this 2nd questions is - does the cashback work for exchange of gold also or only on new gold purchase?

Anyone who has done this recently or have some experience on it, please guide.

Yes, you'll have to pay GST.
Yes you'll get cb on tata card.

If tanishq is not necessary, try visiting Malabar or reliance.

 

[ranisi]

Yes, you'll have to pay GST.
Yes you'll get cb on tata card.

If tanishq is not necessary, try visiting Malabar or reliance.

Thanks for confirmation

 

[ranisi]

Yes, you'll have to pay GST.
Yes you'll get cb on tata card.

If tanishq is not necessary, try visiting Malabar or reliance.

Two related question:

1) Didn't GST council say - no GST will be applied on exchange of gold?

2) If gold weight of old and new gold in exchange is same - there should be no GST right? If new gold weight is more then GST applied on differential gold weight make sense.

Please clarify on this what to be expected?

** Thanks for suggesting Malabar and Reliance. Will consider them too.

 

[wolfdalalstreet]

1) Will I have to pay GST on new gold I am getting in exchange of my old gold?
Answer: You will get value of your old gold. The new gold purchase is an entirely new order and the value of old gold will be deducted from the final bill value.

2) Will it get 5% cashback if I pay for any amount required in this exchange at Tanishq? Mainly wanted to know in this 2nd questions is - does the cashback work for exchange of gold also or only on new gold purchase?
Answer: Again, let us say you purchase a gold chain worth 2 Lakhs. This 2 lakhs includes gold, making charges, GST etc. Now, you gave old gold and the worth of that is value of Rs. 50000. You have to pay 1.5 Lakhs via Tata Neu Infinity Card and you will get 5% NeuCoins in your next billing cycle.

 

[Raghav2006]

Two related question:

1) Didn't GST council say - no GST will be applied on exchange of gold?

2) If gold weight of old and new gold in exchange is same - there should be no GST right? If new gold weight is more then GST applied on differential gold weight make sense.

Please clarify on this what to be expected?

** Thanks for suggesting Malabar and Reliance. Will consider them too.

Sorry, I am a student and not aware of these rules, but what I know is on exchange they'll charge you making charges, and you'll need to make GST on it.
Secondly, as far as I remember when you'll exchange gold with them, they'll provide you with the value of gold, and when you'll buy something they'll make a separate bill for it of it's whole value and exchange will be deducted from it.

 

[ranisi]

Sorry, I am a student and not aware of these rules, but what I know is on exchange they'll charge you making charges, and you'll need to make GST on it.
Secondly, as far as I remember when you'll exchange gold with them, they'll provide you with the value of gold, and when you'll buy something they'll make a separate bill for it of it's whole value and exchange will be deducted from it.

Thanks for replying.

On exchange - making charges and GST on making charges will be charged. I too think so.

What I am able to gain knowledge from various internet posts in GST on new gold should not be charged as it is exchange with old gold. This is what I am trying to clarify, if someone has experience on it.

Assuming 10g old gold in exchange of 10g of new gold. There should not be GST on this new 10g gold (assume same purity). Since gold value is same for old gold and new gold there should not be GST. However making charges and GST on making charges alone might be there.

Let me know your thoughts.

**On a side note - If new gold value(Weight) (assume purity same as old gold) is more than old gold value then differential gold weight might be levied GST on gold value. That's what I understand but need someone to confirm or clarify

 

[iimadarsh]

Brother, can someone confirm? I also wanted to exchange a 10gm gold coin for a chain or ring. Now how much extra will I have to pay from my pocket? Or is there any other way to avail it at a lower charge?

 

[ranisi]

Brother, can someone confirm? I also wanted to exchange a 10gm gold coin for a chain or ring. Now how much extra will I have to pay from my pocket? Or is there any other way to avail it at a lower charge?

Adarsh, your requirement is currently vague.

But let's assume you have 10gm 22k gold coin and take 10gm 22k gold chain in exchange. So weight of gold is same, purity also same. So ideally you will have to pay any making charges on 10gm 22k gold chain + GST on making charges.

I belive there won't be any GST on new 10gm 22k gold chain you take. But better to confirm with seller once before committing and going ahead with payment.

** If you opt to take cash instead by giving your gold coins there might be 1-3% deduction on current day gold purity rate. Again check with seller before committing.

Don't forget to share your experience once you have done exchange to help others.

 

[iimadarsh]

But let's assume you have 10gm 22k gold coin and take 10gm 22k gold chain in exchange. So weight of gold is same, purity also same. So ideally you will have to pay any making charges on 10gm 22k gold chain + GST on making charges.

I belive there won't be any GST on new 10gm 22k gold chain you take. But better to confirm with seller once before committing and going ahead with payment.

** If you opt to take cash instead by giving your gold coins there might be 1-3% deduction on current day gold purity rate. Again check with seller before committing.

Don't forget to share your experience once you have done exchange to help others.

In your opinion, which option would be better? Should I sell at 1-3% and then buy a new gold ring with Tata Neu cards? Or is exchanging more beneficial?
By the way, I have 999.9 24k gold biscuits of 5gm, 2gm x2, and 1gm that I bought during a sale.

 

[Raghav2006]

Brother, can someone confirm? I also wanted to exchange a 10gm gold coin for a chain or ring. Now how much extra will I have to pay from my pocket? Or is there any other way to avail it at a lower charge?

Most probably if gold price is 7k then 10gm will cost 70k plus assume 10% making and 3% tax in total bill will be 79310 - 70k coin exchange.

 

[ranisi]

In your opinion, which option would be better? Should I sell at 1-3% and then buy a new gold ring with Tata Neu cards? Or is exchanging more beneficial?
By the way, I have 999.9 24k gold biscuits of 5gm, 2gm x2, and 1gm that I bought during a sale.

I was asking questions now I am replying to questions 🤗🤗

In general on selling you loose 1-3% might be more too, on current rate of gold purity. Need to check with purchaser how much he is giving. Compare with current rate to check your loss gain ratio.

On exchange you save those 1-3% which you loose whole selling. But you would want to exchange of you really want a jwellery or something else.

Always calculate how much you spent and how much you are gaining while selling.

On exchange anyway you will take jwellery which will be same or more than weight of metal that you exchange. But you have to also keep in mind making charges which you will be bound to pay.


*** By the way from where do you plan to purchase more gold coins using tata neu card. Any offer going on which me interest others too?

 

[Raghav2006]

In your opinion, which option would be better? Should I sell at 1-3% and then buy a new gold ring with Tata Neu cards? Or is exchanging more beneficial?
By the way, I have 999.9 24k gold biscuits of 5gm, 2gm x2, and 1gm that I bought during a sale.

Visit several brand stores and compare making and exchange rate.
Most probably you'll be good to avoid brands and visit local shops and avoid gst altogether

 

[Raghav2006]

Thanks for replying.

On exchange - making charges and GST on making charges will be charged. I too think so.

What I am able to gain knowledge from various internet posts in GST on new gold should not be charged as it is exchange with old gold. This is what I am trying to clarify, if someone has experience on it.

Assuming 10g old gold in exchange of 10g of new gold. There should not be GST on this new 10g gold (assume same purity). Since gold value is same for old gold and new gold there should not be GST. However making charges and GST on making charges alone might be there.

Let me know your thoughts.

**On a side note - If new gold value(Weight) (assume purity same as old gold) is more than old gold value then differential gold weight might be levied GST on gold value. That's what I understand but need someone to confirm or clarify

My sister went to malabar last month for gold exchange but I don't remember what she told me.
But I guess most probably what I was told is if you give them 5gm gold, you'll still need to pay making on 5gm plus gst on whole gold price and making.
If gold exchange price is 10k and what you buy costs 12000 independently then you pay 2k.

 

[Riva]

My wife exchange a 18k gold ring for a 22k gold ring at Tanishq in May24. They determine the cost / purity of the old ring by melting and testing. This is only gold cost and no gst is involved. Then from the product you want to buy, they determine the final price. In my case it was a 3.84 gram, 22k ring, where gold cost was 25581, making charges 5500 (21.50%) and gst on total was 932 (3% of gold+making). This total cost is 32014/.
They gave me a discount of 5% on making charges (5% of 5500= 5225 making charges) and the new final cost was 31731 with gst.
From this 31731, they then reduce the gold value of the exchanged gold item (gold only) and a new payment value is derived. That is the amount you need to pay. In my case I paid 5000 from hdfc vouchers and remaining by card.

 

[Raghav2006]

My wife exchange a 18k gold ring for a 22k gold ring at Tanishq in May24. They determine the cost / purity of the old ring by melting and testing. This is only gold cost and no gst is involved. Then from the product you want to buy, they determine the final price. In my case it was a 3.84 gram, 22k ring, where gold cost was 25581, making charges 5500 (21.50%) and gst on total was 932 (3% of gold+making). This total cost is 32014/.
They gave me a discount of 5% on making charges (5% of 5500= 5225 making charges) and the new final cost was 31731 with gst.
From this 31731, they then reduce the gold value of the exchanged gold item (gold only) and a new payment value is derived. That is the amount you need to pay. In my case I paid 5000 from hdfc vouchers and remaining by card.

Yup, I guess that's what my sister told me for malabar as well.
They'll reduce the value of gold exchanged from final bill.