GST on Gold in India (2025): Everything You Need to Know
In 2025, gold continues to be one of India’s most trusted assets — combining emotional value with financial security. Despite rising prices and evolving investment options, Indian households still prefer gold for weddings, long-term savings, and portfolio diversification. However, with stricter compliance norms, digitized invoicing, and enhanced GST enforcement, understanding GST on gold in 2025 is more important than ever.
Since the implementation of GST, the gold sector has shifted from fragmented taxation to a uniform system. In 2025, GST regulations on gold remain stable, but enforcement, transparency, and digital tracking have increased, directly affecting buyers, traders, and investors.
If you are planning to buy gold in 2025 — whether physical jewelry, coins, bars, or digital gold — understanding GST implications helps you avoid overpayment, ensures compliance, and enables informed purchase decisions.
What is GST on Gold?
GST (Goods and Services Tax) is a destination-based indirect tax levied on the supply of goods and services across India. In 2025, gold continues to be taxed under GST at multiple transaction levels, making it essential for buyers to understand the complete tax structure.
GST on gold applies to:
- The value of gold metal
- Jewelry making or workmanship charges
- Goldsmith and job-work services
- Import of gold into India
In 2025, GST rates on gold remain unchanged, but strict invoicing norms, e-way bill monitoring, and BIS compliance have increased accountability across the supply chain.
GST Rate Table for Gold (2025)
| 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 | ₹6,800 |
| Cost of Gold (10g) | ₹68,000 |
| Making Charges (₹500/g) | ₹6,000 |
| GST on Gold (3%) | ₹2,040 |
| GST on Making Charges (5%) | ₹300 |
| Final Cost | ₹76,340 |
Tip: Always ask for a detailed bill showing gold rate, making charges, and GST separately.
POSITIVE IMPACTS (2025 Perspective)
- Transparent pricing and standardized billing nationwide
- Mandatory GST invoicing improves buyer protection
- Input Tax Credit (ITC) strengthens the organized gold market
- Easier audit trails and reduced tax disputes
CHALLENGES
- Higher compliance costs for small jewelers
- Increased retail prices due to higher making charges + GST
- Continued pressure on the unorganized sector
Overall, by 2025, GST has formalized the gold ecosystem, benefiting long-term buyers and compliant businesses.
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.
Use our free GST calculator to find out the exact GST on gold purchases.
What About Digital Gold?
Digital gold continues to gain traction in 2025, especially among young investors and salaried professionals.
GST implications:
- 3% GST charged at purchase
- No additional GST during resale or redemption
- Stored in insured vaults with reputed providers
- Fully traceable and compliant
Digital gold offers flexibility and transparency without increasing GST liability.
E-Way Bill Rules for Gold
In 2025, e-way bill enforcement for gold has tightened:
- States can mandate e-way bills for gold movement
- Mandatory for registered dealers transporting gold/jewelry
- AI-based GST monitoring flags non-compliance
Businesses must stay updated with state-specific gold transport rules to avoid penalties.
GST on Used Gold or Second-Hand Jewelry
Buying old gold from individuals? Here’s how GST applies:
- 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.
- 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
- Attica Gold Pvt. Ltd. (2020) – GST applies only to the margin when buying used gold from individuals.
- Biostadt India Ltd. (2018) – Gold coins given under a sales promotion scheme are considered taxable supplies, not gifts.
Key Takeaways for Buyers
- Always ask for an itemized invoice.
- Ensure the gold is BIS hallmarked.
- Know the GST rates: 3% on gold, 5% on making charges.
- When exchanging old jewelry, ensure the correct GST is applied.
- 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.
