Gold jewellery, coins and bars generally attract 3% GST in India. However, the amount you pay depends on the transaction. Buying a necklace, paying an artisan to manufacture jewellery, exchanging old gold and buying a gold ETF follow different rules.
For example, if a jeweller sells you a necklace for ₹1,00,000 plus ₹10,000 in making charges, GST on that retail jewellery sale is ₹3,300. It is calculated at 3% of the total ₹1,10,000 value.
This blog explains the applicable rates, recent import-duty changes and how to check your gold purchase bill.
Latest Updates on GST and Import Duty on Gold in India
The standard GST rate on gold and gold jewellery remains 3% under the applicable rate schedule. The September 2025 goods-rate notification retained gold and jewellery in the 3% schedule.
Customs duty is separate from GST. Effective 13 May 2026, the standard import-duty structure for specified gold bullion increased to 15%, comprising 10% Basic Customs Duty and 5% Agriculture Infrastructure and Development Cess. Different gold forms and eligible import schemes can have different treatment.
The 6% import-duty figure introduced in July 2024 should therefore not be presented as the current standard rate for those bullion imports.
| Tax component | General treatment |
|---|
| Domestic sale of gold jewellery, bars and coins | 3% GST |
| Qualifying gold jewellery job work | 5% GST on job-work charges |
| Standalone jewellery repair service | Generally 18% GST |
| Standard import duty on specified gold bullion following the May 2026 change | 15%, excluding import IGST |
| Import IGST on taxable gold imports | Generally 3%, subject to applicable exemptions and valuation |
These rates apply to different transactions. An import-duty change can affect the domestic gold price without changing the retail GST percentage.
What is GST on Gold in India?
GST on gold is the Goods and Services Tax charged on a taxable supply of gold or gold jewellery. It is calculated as a percentage of the taxable transaction value.
If you buy a gold bar for ₹50,000 before tax, GST at 3% is ₹1,500. Your total payment is ₹51,500.
GST Rates and HSN Codes for Gold
| Product or service | Common classification | GST rate |
|---|
| Gold bars and bullion classified as unwrought gold | HSN 7108 | 3% |
| Gold jewellery and ornaments | HSN 7113 | 3% |
| Gold coins classified under the coin heading | HSN 7118 | 3% |
| Qualifying jewellery job-work services | Heading 9988 | 5% |
| Standalone jewellery repair services | SAC 998722 | Generally 18% |
Classification depends on the actual goods or services supplied. Loose diamonds and precious stones have their own entries and should not automatically be assigned the gold jewellery rate.
How is the 3% GST Split?
For an ordinary intrastate sale, GST is charged as 1.5% CGST plus 1.5% SGST. An interstate sale generally attracts 3% IGST.
These components together represent the total applicable rate. They are not additional taxes over and above 3%. Read more about CGST, SGST and IGST.
What Is the GST Rate on 22-Carat and 24-Carat Gold?
The GST rate generally remains 3% for both 22-carat and 24-carat gold. Purity changes the value of the gold, rather than the tax percentage.
| Purity | Common purchase | General GST rate |
|---|
| 24K gold | Coins and bars | 3% |
| 22K gold | Jewellery and ornaments | 3% |
| 18K gold | Jewellery, including many studded designs | 3% |
For example, gold purchases with the same taxable value of ₹50,000 attract ₹1,500 GST regardless of whether the gold is 22K or 24K.
When you buy finished jewellery, include the making charges that form part of that jewellery sale in the taxable value.
GST on Physical Gold Purchases
Ready-Made Jewellery and Ornaments
A retail jewellery sale generally attracts 3% GST on the total transaction value, including making charges. The same principle applies when the jeweller supplies its own gold and sells you a finished piece made to order.
Displaying gold value and making charges on separate invoice lines does not, by itself, turn the transaction into two independently taxed supplies.
Gold Bars and Coins
Gold bars and coins generally attract 3% GST on their taxable selling price. That price can include a supplier's premium or fabrication cost.
For example, if a coin is sold for ₹25,000 before GST, including the seller's premium, GST is ₹750 and the total is ₹25,750.
Second-Hand Gold Jewellery
An individual's occasional sale of personal old jewellery ordinarily falls outside GST because it is not made in the course of that person's business. The jeweller does not automatically become liable for reverse-charge GST on that personal sale.
A dealer's taxable resale of second-hand jewellery is different. The applicable valuation must be checked. The second-hand-goods margin rule may apply where its conditions are met, including no purchase ITC and no processing that changes the goods' nature. It should not be assumed to cover every resale or remanufactured item.
GST on Gold Jewellery Making Charges, Custom Work and Repairs
Making charges pay for the labour and craftsmanship involved in producing jewellery. The GST treatment depends on who owns the gold and what is being supplied.
Making Charges Included in a Jewellery Sale
When the jeweller sells you the finished jewellery, GST is generally 3% on the total jewellery value, including making charges.
Do not automatically add 5% GST to making charges already forming part of that retail sale.
Jewellery Job Work for a Registered Business
Qualifying job work on gold belonging to a registered jeweller generally attracts 5% GST on the job-work fee.
Suppose a registered jeweller gives its gold to a registered artisan, who charges ₹10,000 to manufacture jewellery. GST on that job-work fee is ₹500.
The jeweller's later sale of the finished jewellery is a separate taxable transaction.
Custom Jewellery Made Using Your Own Gold
If you retain ownership of the gold and pay only to have it manufactured into jewellery, the service must be classified separately.
GST law defines job work by reference to goods belonging to another registered person. Manufacturing jewellery from gold owned by an unregistered retail customer generally attracts 18% GST on the manufacturing-service charge.
A ₹5,000 service fee would therefore attract ₹900 GST. Your own gold is not automatically taxed at 3% again merely because it is processed. An exchange, ownership transfer or supply of additional gold needs separate assessment.
Jewellery Repairs
Standalone jewellery repair services, such as fixing an existing chain, generally attract 18% GST under the repair-service classification.
For a ₹1,000 repair-service charge, GST would be ₹180. A transaction involving replacement goods or a new jewellery supply needs its own classification.
Does Reverse Charge Apply to an Unregistered Goldsmith?
An artisan's unregistered status alone does not establish reverse-charge liability. Reverse charge applies where the law and relevant notifications cover the transaction and recipient.
For business transactions, check the applicable provision rather than assuming every purchase from an unregistered artisan attracts reverse charge.
How to Calculate GST on Gold Purchases
For a normal retail jewellery sale:
Taxable value = Gold value + Making charges + Other includible charges − Eligible discounts
GST = Taxable value × 3%
Final amount = Taxable value + GST
Charges and discounts must be treated according to the GST valuation rules.
Example: GST on a 10-Gram Gold Jewellery Purchase
The following figures are hypothetical and do not represent current market prices.
| Particulars | Calculation | Amount |
|---|
| Gold value | 10 grams × ₹10,000 | ₹1,00,000 |
| Making charges | 10% of gold value | ₹10,000 |
| Taxable jewellery value | ₹1,00,000 + ₹10,000 | ₹1,10,000 |
| CGST | ₹1,10,000 × 1.5% | ₹1,650 |
| SGST | ₹1,10,000 × 1.5% | ₹1,650 |
| Total GST | ₹1,650 + ₹1,650 | ₹3,300 |
| Final invoice amount | ₹1,10,000 + ₹3,300 | ₹1,13,300 |
For an interstate transaction, the ₹3,300 would generally be shown as IGST.
Calculating GST When the Price Includes Tax
For a total wholly taxable at 3%:
GST included = Total price × 3 ÷ 103
A GST-inclusive price of ₹1,03,000 contains ₹3,000 GST and ₹1,00,000 taxable value.
You can use a GST calculator after confirming the appropriate rate and taxable amount.
Should You Add Customs Duty to a Retail Gold Bill?
Do not add import duty again to a domestic retail quotation simply because gold was imported. The seller's domestic price normally already reflects its procurement costs.
A direct import has a separate customs calculation, with import IGST applied to the legally determined import-tax base. It should not be combined with a retail jewellery example.
GST on Gold Investment Schemes
Gold ETFs
Buying Gold ETF units does not attract 3% GST on the value of those units. ETF units are securities, which fall outside the GST definitions of goods and services.
Taxable brokerage and other service fees may still attract GST. Costs incurred by the fund can also affect its expenses and returns.
Gold Mutual Funds
The value of gold mutual fund units is not subject to the physical-gold purchase GST. Buying fund units is different from directly buying gold.
Taxes on related services and income-tax treatment remain separate questions.
Sovereign Gold Bonds
Sovereign Gold Bonds are government securities linked to gold. GST is not charged on the value of the bonds themselves. Taxable brokerage or other service charges can attract GST where applicable.
This does not mean every return from an SGB is tax-free. Interest and gains follow the applicable income-tax rules.
Digital Gold
Digital gold representing ownership of physical gold generally attracts 3% GST when purchased.
If the gold value before GST is ₹10,000, the total purchase cost is ₹10,300, before any other applicable charges. Check whether the app's displayed price already includes tax.
Conversion into a physical coin or bar may involve minting, delivery and other charges.
Digital gold is distinct from a Gold ETF. SEBI has cautioned that the digital-gold products covered by its November 2025 release operate outside its regulatory framework.
GST Exemptions on Gold in India
There is no general GST exemption for ordinary domestic gold purchases merely because the purchase is for a wedding, festival, gift or investment.
Conditional Relief for Eligible Export Transactions
Notification 26/2018-Central Tax (Rate) introduced conditional relief for specified supplies of gold by nominated agencies to registered recipients under an export-linked scheme.
The notification requires export and documentary conditions to be met. This is targeted relief, not an exemption for a customer buying jewellery in a shop.
Exports are also governed by the separate zero-rated-supply framework. Exemption, zero rating and transactions outside GST should not be treated as interchangeable terms.
Personal Gifts and Inheritance
A personal transfer of existing jewellery to a family member, or inheritance outside business activity, ordinarily does not create a GST supply.
However, buying jewellery to give as a gift remains a taxable purchase. Business gifts require separate consideration.
A personal buyer cannot claim back purchase GST through input tax credit.
A registered jeweller or manufacturer may claim input tax credit on eligible business purchases, including qualifying job-work services, subject to GST conditions.
Credit is based on eligible input tax. It is not calculated simply by subtracting the 3% jewellery rate from the 5% job-work rate.
A business purchase also does not guarantee eligibility. Credits for personal consumption or goods disposed of as genuine gifts are generally restricted under Section 17(5).
GST on Exchanging Old Gold for New Jewellery
Selling your personal old gold and purchasing new jewellery must be assessed separately.
The personal old-gold sale ordinarily does not attract GST, but the jeweller's new jewellery supply remains taxable. GST does not automatically apply only to the cash difference.
| Particulars | Amount |
|---|
| Taxable value of new jewellery | ₹1,10,000 |
| GST at 3% | ₹3,300 |
| New jewellery invoice total | ₹1,13,300 |
| Agreed old-gold value adjusted | ₹60,000 |
| Balance payable | ₹53,300 |
This assumes ₹1,10,000 is the correctly determined taxable value under the valuation rules. The old-gold credit settles part of the bill; it does not automatically become a discount on the new jewellery.
How Does GST Affect the Gold Price?
It Increases the Final Purchase Cost
For a personal buyer, purchase GST forms part of the amount paid. Gold with a taxable price of ₹1,00,000 costs ₹1,03,000 after 3% GST.
Making Charges Affect the Tax Amount
A higher taxable jewellery value creates a higher GST amount.
For example, reducing making charges by ₹5,000 in a retail jewellery sale reduces GST by ₹150, assuming the entire reduction qualifies in the taxable value.
Customs Duty Affects Procurement Cost
Import-duty changes can influence the cost at which gold enters the domestic market. That can affect the underlying selling price before retail GST is calculated.
The GST percentage is generally uniform, but final bills can differ because of the quoted gold price, premiums, making charges, discounts and other amounts included in the supply.
Before GST, domestic gold transactions were subject to the applicable pre-GST levies, including VAT and excise provisions. Customs duty was not abolished by GST. A single historical tax percentage should not be applied to every earlier gold transaction.
What Should You Check Before Paying?
Review the seller's GSTIN, gold weight and purity, quoted price, making charges, taxable value and GST breakup. For exchanges, check that the old-gold value and remaining payment are clearly recorded.
Retain the tax invoice. For business purchases, a qualified invoice supports documentation, while ITC eligibility must be assessed separately.
Conclusion
Gold jewellery, bars and coins generally attract 3% GST, but the transaction determines how tax is calculated. Retail jewellery includes making charges in its taxable value; job work, customer-owned gold manufacturing and repairs have separate service rules.
Check the full quotation and invoice, and keep customs duties distinct from retail GST. For an old-gold exchange, confirm the new jewellery value before applying the old-gold adjustment.
Frequently Asked Questions
Is GST on Gold the Same Across India?
The standard rate is generally 3% nationwide. The split between CGST/SGST and IGST depends on the transaction, while the seller's underlying price can differ.
Does Hallmarked Gold Attract a Different GST Rate?
Hallmarking alone does not change the GST rate. Gold jewellery generally attracts 3% under its classification.
Is There GST on Jewellery With Zero Making Charges?
Yes. Waiving making charges does not exempt the jewellery. GST applies to the remaining taxable transaction value.
Can You Avoid GST by Exchanging Old Gold at the Same Shop?
No general exemption arises from the exchange. The new jewellery supply remains taxable under the applicable valuation rules.
Does Paying by UPI, Card or Cash Change the Rate?
The payment method does not, by itself, change the GST rate. Check the actual taxable price and charges.
Is GST Charged Again When You Sell Personal Gold?
An occasional sale of personal gold outside business activity ordinarily does not attract GST. Income-tax consequences on any gain must be considered separately.
