No GST Relief on Gold Exchange Deals, Say Tax Officials

Confusion is growing among consumers over GST charges when exchanging old gold for new jewellery. Many customers are questioning why they must pay GST on the full value of new ornaments, even when part of the payment is made by handing over old gold.

Jewellers clarify that GST is calculated on the entire bill amount of the new jewellery, regardless of the old gold’s value. For instance, if a customer buys a ₹1 lakh ornament and exchanges old gold worth ₹60,000, the 3% GST (₹3,000) is still charged on ₹1 lakh, not ₹40,000. The Commercial Taxes Department confirmed there are no GST exemptions in exchange transactions. Officials say paying full GST ensures billing transparency and protects consumers during resale or future evaluations.