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Government says to levy 3% tax on gold under GST, industry relieved

05-06-2017: India will tax gold at a rate of 3% under a new nationwide sales tax that comes into effect on july 1, the government said on Saturday.

The Goods and Services Tax (GST on gold, which was lower than industry expectations of around 5 %, will replace a number of federal and state levies.

“in the case of gold, keeping various factors in mind, because there was an extensive debate, we finally reached a consensus of taxing gold at 3%,” Finance Minister Arun Haitly told reporters in New Delhi after a meeting of the GST Council.

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