Gold Jewelry Buying Tips: GST Council has reduced GST on many items but there is no change in GST on gold and silver. 3% GST on gold and 5% GST on jewellery making charge is applicable as before. In such a situation, know 5 tricks, which can save money.
Negotiate the making charge
A large part of the price of most jewellery goes into making charge. In shops, it is charged on percentage basis (8–12%), while making charge on per-gram basis is often cheaper. Ask about the making charge at the jewellery shop and shop from where it is less.
Understand the wastage and design
In many shops, wastage is also added in making. Due to this, even a small amount of gold can seem expensive to you. Charges are higher in jewellery with heavy and complex designs. Whereas, less making charge will be charged on simple designs. Choose the design according to your need and budget. Get the wastage separated. This can also save up to thousands of rupees.
22 carat vs 18 carat: Balance of purity and price
22 carat gold is pure, but is also expensive. On the other hand, 18 carat is cheaper but the purity is slightly less. If the jewellery or chain is for daily wear or gift, then you can also look for the 18 carat option. This can save a lot on 10 grams.
Check hallmark and billing
The BIS HUID should be 6-digit. The weight, purity and making charge breakup should be clearly written in the bill. Correct hallmark and billing does not cause problems in the future. This reduces the loss in buy-back or exchange. Actually, on exchanging old jewellery, one gets a benefit on deduction or net amount from the shops. 5% GST is still applicable on making charge.
Take advantage of offers and packaging
Seasonal or festive offers are often available on making charge, not on GST. Fancy design of packaging can also increase your jewellery bill. Therefore, choose a simple design and buy it after understanding the packaging.
Disclaimer: This article is written for informational purposes only. The GST rates, making charges and gold rates given in it may change according to time and place. Always confirm with your financial advisor or jewelry dealer before investing or buying.