GST on Gold in India (2024–2025): Everything You Need to Know
Gold has always held a special place in Indian households — whether as an investment, ornament, or a symbol of heritage. However, the introduction of Goods and Services Tax (GST) has brought significant changes to how gold is priced, sold, and taxed across the country.
If you’re planning to buy gold — whether it’s jewelry, coins, or digital gold — understanding the GST implications can help you make better purchasing decisions and avoid being overcharged.
What is GST on Gold?
GST (Goods and Services Tax) is a unified tax structure introduced to simplify the indirect tax system in India. It applies to almost all goods and services — and gold is no exception.
In gold’s case, GST is not just levied on the metal itself, but also on:
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Gold value (3%)
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Jewelry making charges (5%)
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Import of gold (10.75% including customs duty + GST)
GST Rate Table for Gold (2024)
| Type of Gold/Product | GST Rate |
|---|---|
| Gold bars, coins, and ornaments | 3% |
| Jewelry making charges | 5% |
| Goldsmith services | 5% |
| Gold import (with duties) | 10.75% |
| Precious stones (semi-finished) | 0.25% |
| Job work (jewelry-related) | 1.5% |
Example: GST Calculation on Gold Jewelry
Let’s say you’re buying a 10-gram gold chain.
| Parameter | Value |
|---|---|
| Gold Rate per Gram | ₹6,385 |
| Cost of Gold (10g) | ₹63,850 |
| Making Charges (₹500/g) | ₹5,000 |
| GST on Gold (3%) | ₹1,915.50 |
| GST on Making Charges (5%) | ₹250 |
| Final Cost | ₹71,015.50 |
👉 Tip: Always ask for a detailed bill showing gold rate, making charges, and GST separately.
How GST Has Affected Gold Prices
✅ Positive Impacts
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Improved transparency in gold trade.
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Input Tax Credit (ITC) available for registered dealers.
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Standardized billing practices across the industry.
❌ Challenges
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Overall price increase due to a jump in tax from earlier 1.2% to 3%.
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Unorganized sector still struggles with compliance.
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Risk of smuggling and off-the-books sales due to higher costs.
Pre-GST vs Post-GST: What Changed?
| Particulars | Before GST | After GST |
|---|---|---|
| VAT | 1% | Nil |
| Service Tax | 1% | Nil |
| GST on Gold | Nil | 3% |
| GST on Making Charges | Nil | 5% |
| Customs Duty | 10% | 10% |
While the total effective tax has increased post-GST, the structure is now more streamlined and transparent.
What About Digital Gold?
Buying gold online? You’ll still pay 3% GST, just like physical gold. The benefit?
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No storage hassles.
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Instant transactions.
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Secure vaults backed by reputed platforms.
No extra GST is charged during resale or redemption — it’s already included at the time of purchase.
E-Way Bill Rules for Gold
As of September 13, 2022, states have the option to mandate e-way bills for gold transport. This means:
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Registered sellers must generate e-way bills for gold/jewelry transportation.
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Some states have their own rules, so always check local GST norms before moving gold.
GST on Used Gold or Second-Hand Jewelry
Buying old gold from individuals? Here’s how GST applies:
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If you buy from an unregistered individual, GST is applied only on the margin (difference between buy and sell price), as per Rule 32(5) of the CGST Rules.
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If you buy from a registered seller, GST is applicable on the full value, but you can claim Input Tax Credit (ITC).
GST Exemptions on Gold
According to the 31st GST Council Meeting, gold supplied by government-approved agencies to registered jewelers is exempted from GST — a boost for the export sector.
However, this exemption doesn’t apply to regular buyers or domestic gold purchases.
Popular Advance Rulings (AAR) on GST and Gold
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Attica Gold Pvt. Ltd. (2020) – GST applies only to the margin when buying used gold from individuals.
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Biostadt India Ltd. (2018) – Gold coins given under a sales promotion scheme are considered taxable supplies, not gifts.
Key Takeaways for Buyers
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Always ask for an itemized invoice.
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Ensure the gold is BIS hallmarked.
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Know the GST rates: 3% on gold, 5% on making charges.
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When exchanging old jewelry, ensure the correct GST is applied.
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Digital gold is taxed at 3% GST, no extra charges on redemption.
Final Thoughts
GST has changed how gold is bought, sold, and traded in India. While prices have gone up slightly, the industry has become more transparent and regulated. Whether you’re buying gold jewelry for a wedding, investing in coins, or trading digital gold — knowing the GST impact helps you stay compliant and make smart choices.
The GST rate on gold is 3% on the value of the gold. Additionally, 5% GST is charged on the making charges for gold jewelry.
Yes, making charges are considered a service and attract 5% GST, whether billed separately or included in the total price.
You will pay:
3% GST on the value of gold
5% GST on the making charges
This is over and above the base price of gold.
Yes. Digital gold purchases are taxed at 3% GST, just like physical gold. No GST is charged at the time of resale or redemption.
If you’re exchanging old jewelry to buy new, GST is only applicable on the value of the new jewelry, not the exchanged item. However, if the jeweler issues a new invoice for the full value, GST will apply accordingly.
Yes, but differently:
If bought from an unregistered person, GST applies only on the profit margin (as per Rule 32(5) of CGST Rules).
If bought from a registered seller, GST is levied on the full value.
Yes. Registered jewelers can claim ITC on the purchase of raw gold, making services, and other related business inputs.
Yes. In addition to GST, imported gold is subject to customs duty of 7.5%, and an additional 3% IGST, totaling to 10.75% effective import tax.
As of September 13, 2022, some states require e-way bills for transporting gold. Check your local GST notifications for compliance, as rules vary by state.
Yes. If gold is supplied by a government-approved agency to a registered jeweler for export purposes, it is exempted from GST.
