GST on Gold: New GST Rates on Gold Purchase, Jewellery, Coins, and Bars
Introduction
Gold has always held a special place in India emotionally, culturally, and financially. Whether it’s 22 carat jewellery for weddings, 24 carat coins for investment, or gold bars purchased by traders, one common question keeps coming up: what is GST on gold today? With prices touching ₹1,30,480 per 10 grams in many regions, understanding the gold GST rate is no longer optional. Just remember one number that is 3%. This number stays constant across different types of gold. It directly affects how much you pay and how much value your gold holds.
Let’s break down the current GST on gold, how it’s calculated, the difference between gst on gold jewellery and bullion, and why the gold tax rate matters so much for buyers across India.
What is GST on Gold?
Before GST came into the picture, gold taxes varied by state. GST simplified everything with a uniform tax structure. When people search for what is GST on gold, they’re usually referring to the GST charged on the value of gold itself as well as on the making charges for jewellery.
Today, the gold GST rate framework is simple:
- 3% GST on the value of gold (this applies to both bullion and ornaments)
- 5% GST on making charges for gold jewellery
This combined structure explains why final bills often look higher than the base gold price.
GST on Gold in India: Current Rate Details
When discussing gst on gold in India, two categories matter:
1. GST on Gold Value – 3%
This fixed gold GST percentage applies whether you buy:
- Gold coins
- Gold bars
- Plain gold ornaments
- 22 carat or 24 carat gold bars
The 3% component is universal and has been steady since GST was introduced.
2. GST on Making Charges – 5%
When you buy jewellery, crafting charges also attract GST.
This is why gst rate on gold jewellery is always a combination of:
- 3% on the gold itself
- 5% on the labour or making charge
The making charge portion increases the final bill, especially for heavy or intricately designed ornaments.
22 Carat Gold GST Rate
Most traditional Indian jewellery is made from 22 carat gold, so buyers frequently ask about the 22 carat gold gst rate. Since GST is based on value and not purity, the GST rate doesn’t change.
- 22 carat gold gst rate = 3% GST on gold value + 5% GST on making charges.
The only thing that changes is the gold price per gram, not the GST percentage.
24 Carat Gold GST Rate
Investment buyers often prefer 24 carat gold, especially coins and bars. Here again, the 24 carat gold gst rate is identical.
- 24 carat gold gst rate = 3% GST on gold value.
(Usually no making charges since coins and bars are manufactured, not hand-crafted.)
This makes 24 carat bars and bars better for pure investment since the extra 5% making charge doesn’t apply.
GST on Hallmarked Gold
Whether it’s 22k or 24k, gst on gold in India applies exactly the same on hallmarked and non-hallmarked gold.
But hallmarked gold is strongly recommended because:
- It guarantees purity
- It avoids disputes during resale
- It ensures accurate gold weight before applying the tax
Some jewellers may charge slightly more for hallmarked gold, but the GST remains 3%.
GST on Gold Coins and Bars
When purchasing gold coins or bars, you only pay:
- 3% GST on the gold value
There are generally no making charges. This makes coins and b more tax-efficient compared to jewellery.
Buyers searching for gst on gold in india or gold gst rate often choose bars for investment because the overall tax impact is lower.
Gold Exchange and GST
A common question:
If you exchange old gold for new jewellery, do you pay GST?
Yes, but only on the difference value.
Your old gold reduces the taxable amount, but GST applies fully on the new jewellery’s making charges.
Jewelers cannot charge GST on the value of old gold you give back.
GST on Digital Gold
.Digital gold offered by firms like MMTC-PAMP, SafeGold, and PayTM also attracts 3% GST at the time of purchase. This is because the underlying asset is real physical gold.
There is no GST during:
- Holding
- Price appreciation
GST applies only at the time of buying.
GST on Gold ETFs & Sovereign Gold Bonds
Good news for investors:
- Gold ETFs (exchange traded funds) → No GST
- Sovereign Gold Bonds (SGBs) → No GST
This makes SGBs one of the most tax-efficient ways to invest in gold.
How GST Really Affects the Price of Gold Today
Gold prices move all the time, but GST adds a fixed layer of cost that every buyer ends up paying—whether you’re picking up a coin, a bar, or a wedding bangle. Let’s break it down in a clean, simple way using current market rates (as of December 2025).
Current Gold Rates (India – Approx.)
- 24K (pure gold): ₹13,048 per gram
- 22K (jewellery grade): ₹11,960 per gram
For this breakdown, we’ll use 24K – 10 grams as the base.
Base Price Without GST
10 grams × ₹13,048 = ₹130,480
That’s the raw value of gold before any tax or making charges enter the picture.
GST on Gold: The First Add-On
Gold attracts 3% GST.
So,
3% of ₹130,480 = ₹3,914
Your bill has already climbed to:
₹130,480 + ₹3,914 = ₹134,394
Jewellery? Then Making Charges Step In
Here’s the thing, the moment you buy jewellery, you’re not just paying for gold. You’re paying for craftsmanship, design, polishing, wastage, and labour.
Let’s assume a realistic making charge of ₹2,000 for simple jewellery. Some jewellers charge far more.
GST on Making Charges
Making charges attract 5% GST.
5% of ₹2,000 = ₹100
Final Price: All Costs Put Together
| Component | Amount |
| Base gold value | ₹130,480 |
| GST on gold (3%) | ₹3,914 |
| Making charges | ₹2,000 |
| GST on making charges (5%) | ₹100 |
| Final Payable Price | ₹136,494 |
This is why the gold tax rate plays a major role in final billing, especially during festival and wedding seasons
Why GST on Gold Matters for Buyers
Understanding what is GST on gold helps buyers:
- Compare jewellery vs. investment options
- Know real vs. inflated pricing
- Avoid being overcharged at stores
- Calculate purity-adjusted values
- Plan purchases in advance
Knowing the exact gold GST percentage ensures transparency and prevents confusion.
Summary of GST on Gold
Here’s the final breakdown of the GST structure for India:
- GST on gold value → 3%
- GST on making charges → 5%
- Applicable to all categories: jewellery, coins, bars, 22 carat, 24 carat
- Effective gold tax rate = 3% + (5% on making charges)
So whether you’re checking gst on gold jewellery, gold gst rate, or purity-specific queries like 22 carat gold gst rate and 24 carat gold gst rate, the structure remains uniform.
Conclusion
For any individual opting to buy jewellery, gold coins, or gold bars in India, knowledge about the applicability of GST is crucial. Be it the cost of making or the total cost, knowledge about the application of GST for gold is vital for avoiding any surprises at the cost of purchasing, as gold is still an important part of Indian culture and an investment in the form of the commodity. For any individual to be perfectly GST compliant and error-free in his records, the help of proper billing and accounting software can be crucial.
Frequently Asked Questions (FAQs)
- Does GST apply differently when buying gold directly from banks?
Yes and no. Banks charge the same 3% GST on gold for coins and bars. But banks cannot sell gold jewellery, so you avoid the 5% making charge component. The rate doesn’t change, but your final price is usually higher because bank coins carry premium design/packaging charges.
- Is GST charged on imported gold?
Imported gold attracts Customs Duty + Agriculture Infrastructure Development Cess (AIDC) first, and then 3% GST is applied on top of those values. This means imported gold becomes significantly more expensive than domestically purchased bullion.
- If I buy gold online from a jeweller, do I still pay GST?
Yes. Whether gold is purchased online or offline, the gold gst percentage remains 3% for gold value and 5% for making charges on jewellery. Online shopping doesn’t reduce GST.
- Is GST applicable on gold loans?
GST isn’t charged on the value of gold you pledge. But processing fees, valuation fees, and service charges on a gold loan attract 18% GST since they fall under financial services.
- Do international travelers pay GST when buying gold duty-free?
No. Gold purchased at duty-free shops outside India doesn’t involve gst on gold in India. But when you bring it back into the country, Customs Duty applies if you exceed the allowed limits, not GST.
