The difference in the price of actual gold and the gold ETF units is due to the cash component (this is updated on a daily basis by the gold ETF’s AMC) which needs to be paid by the investor in case they want to take delivery of gold ETF units (normally 1kg and above). When cash component is added to the Gold ETF’s unit price (like for example check Axis Gold ETF cash component), then it becomes equivalent to actual gold rates. But a downside of taking delivery of the gold ETF units is that 3% GST needs to be paid over and above the cash component part & 3% GST will again need to be paid if one tries to sell that gold to a jeweler on a later date (as mentioned in this article)
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