GST on Gold in India
Gold is taxed at 3% GST, with an additional 5% GST on making charges. The rate applies across India under HSN code 7108 / 7113.
Working out the GST on gold
A gold bill has two taxable parts that are charged at different rates, so the final GST is not a single flat percentage of the total.
- The gold value attracts 3% GST.
- The making charges attract 5% GST, billed separately.
- For intra-state sales each rate splits into equal CGST and SGST halves. Inter-state sales use a single IGST at the same rate.
A worked example
Take a gold purchase where the base value is ₹60,000 and the making charges are ₹6,000. Here is how the bill builds up.
GST on gold rates in 2026
Gold sits on its own special 3% rate, separate from the standard GST slabs, and this was left untouched by the September 2025 GST 2.0 reforms. The table covers the common gold formats.
| Type of gold | GST rate | Notes |
|---|---|---|
| Gold value (all purities) | 3% | 24K, 22K, 18K. Rate is on value, not purity |
| Making charges | 5% | Jewellery only, billed separately |
| Gold coins & bars | 3% | No making charge component |
| Digital gold | 3% | On the purchase value |
| Sovereign Gold Bonds | 0% | Treated as securities, not goods |
| Gold ETFs | 0% | Fund management fee carries 18% inside NAV |
| Exports | 0% | Zero-rated under GST law |
Your gold bill is not a flat 3%
A jewellery invoice taxes the metal and the making charges at different rates, so the effective tax is always a little above 3%. On a piece where the gold is worth 60,000 and making charges are 6,000, you pay 1,800 on the gold and 300 on the making, for 2,100 total GST, not a flat 3% of the whole bill. Always ask for an itemised invoice that separates the two, since a lump-sum bill can hide an incorrect rate. One qualification, because it is where rate pages most often appear to contradict each other: the two-rate split is the position on a custom or job-work order, where you commission a piece or bring your own gold. On ready-made retail jewellery billed at a single consolidated price, the sale is generally treated as a composite supply with the gold as the principal supply, and 3% applies to the whole amount including making charges. Ask your jeweller which basis they are billing on, because on a piece with heavy making charges the difference is real money.
Selling, exchanging and importing gold
Selling your old gold
An individual selling personal gold to a jeweller does not pay GST on that sale. When you exchange old gold for a new piece, GST is not charged on the value of the old gold you trade in, but the making charges on the new jewellery still attract 5%.
Imported gold
Imported gold attracts 3% IGST on the assessable value, on top of customs duty. Following the 2024 Budget, the customs duty on gold was cut to 6%, down from 15% earlier.
Input tax credit for jewellers
Registered jewellers can claim input tax credit on the GST paid on raw gold and on job-work charges, including tax paid under reverse charge on supplies from unregistered job workers. A consumer buying jewellery for personal use cannot claim ITC.
Is GST different for 24 carat, 22 carat and 18 carat gold?
No. This is the single most common question about gold GST, and the answer is that purity does not change the rate. 24 carat, 22 carat and 18 carat gold are all taxed at 3% on the metal value. What changes is the rupee amount, because purer gold costs more per gram — not the percentage.
| Purity | Also written | GST rate | On ₹1,00,000 of gold |
|---|---|---|---|
| 24 carat (99.9% pure) | 24K, 999 | 3% | ₹3,000 |
| 22 carat (91.6% pure) | 22K, 916 | 3% | ₹3,000 |
| 18 carat (75% pure) | 18K, 750 | 3% | ₹3,000 |
Because 24 carat gold is usually sold as coins and bars rather than jewellery, a 24 carat purchase often carries no making charges at all, so the total tax really is a flat 3%. A 22 carat ornament, by contrast, almost always has making charges attached at 5%, which is why two gold purchases of the same value can produce different bills.
Hallmarking does not change the rate either. Hallmarking charges are billed separately by the jeweller and attract GST in their own right, but they do not alter the 3% on the gold. Customised or designer jewellery is taxed identically to a standard piece, since the rate follows the metal value and the making charges, not the design.
Does GST on gold change between Mumbai, Delhi or Kerala?
No. GST on gold is a national rate: 3% everywhere in India. There is no city rate and no state rate, so a purchase in Mumbai, Delhi, Chennai, Kolkata or Kerala carries exactly the same 3% on the metal and 5% on making charges.
What does change is the split, and it changes nothing about what you pay. The deciding factor is where the gold moves, not where you live. Walk into a Mumbai shop, pay, and carry the gold out with you, and the supply takes place in Maharashtra: 1.5% CGST plus 1.5% SGST, even if you live in Delhi. Order online, or have a jeweller ship to an address in another state, and the movement makes it inter-state: a single 3% IGST. Under Section 10 of the IGST Act it is the movement of the goods that fixes the place of supply, not the address on your ID. Either way the total is 3%.
Gold prices do differ by city because of local demand, transport and jeweller margins, which is probably where the idea of a city-specific tax comes from. The tax itself does not move.
Gold savings schemes and EMI purchases
Many jewellers run monthly instalment schemes where you pay over a period and take delivery at the end. GST is charged at the point the jewellery is actually supplied, not on each instalment, because the instalments are advances rather than a supply. On an EMI purchase through a lender, the GST is charged upfront on the full value at the time of sale; the EMI only splits your payment, it does not split the tax.
Compliance points for jewellers
A jeweller's invoice should separately show the metal value, the making charges, the HSN codes and the GST on each component, since bundling them into one line invites both customer disputes and scrutiny. Job work sent to a karigar attracts GST on the job-work charge, and where the karigar is unregistered the jeweller accounts for it under reverse charge and can claim it back as credit. E-invoicing obligations apply once turnover crosses the prescribed threshold.
Frequently asked questions
No. GST is charged on the value of the gold, not its purity, so the rate is 3% for 24 carat, 22 carat and 18 carat alike. The rupee amount differs only because purer gold costs more per gram. 24 carat is usually sold as coins or bars with no making charges, so a 24 carat purchase is often a flat 3%.
3% on the value of the gold. Since 24 carat gold is normally bought as coins or bars rather than jewellery, there are usually no making charges, so 3% is the whole tax. On ₹1,00,000 of 24 carat gold that is ₹3,000.
No. GST on gold is 3% everywhere in India. There is no city or state rate. What decides the split is where the gold moves: carry it out of a Mumbai shop yourself and it is an intra-state supply there, 1.5% CGST plus 1.5% SGST, even if you live elsewhere. Have it shipped to another state and it becomes a single 3% IGST. You pay 3% either way.
No. The September 2025 GST 2.0 rationalisation focused on the standard slabs. Gold kept its special 3% rate and the 5% on making charges, and no CBIC notification has revised them.
No. An individual selling personal gold to a registered jeweller does not pay GST on that transaction.
Digital gold attracts 3% GST on the purchase value, the same as physical gold. Sovereign Gold Bonds attract 0% at purchase because they are treated as securities rather than goods.
IGST applies when the gold moves between states — most online orders shipped inter-state, for example. It is the movement of the goods that decides this, not where the two parties live: buy over the counter in another state and carry the gold away yourself and it is an intra-state supply there, so CGST and SGST apply. The total rate stays 3% either way, only the split changes.