Understanding the GST on gold is essential
for both buyers and sellers in India. As per the latest GST Council meeting in
September 2025, the GST rates on gold and gold jewellery remain unchanged,
ensuring price clarity during festive and wedding seasons.
Current GST Rates on Gold (2025)
The Goods and Services Tax (GST) on gold in India is fixed
at 3% of the value of gold, whether it is in the form of
jewellery, coins, or bars. In addition, making charges on jewellery attract
a 5% GST.
GST Rate Table for Gold
|
Product/Service |
GST Rate (2025) |
Notes |
|
Physical Gold (24K/22K) |
3% |
Bars, coins, jewellery |
|
Making Charges (Jewellery) |
5% |
On craftsmanship/service fees |
|
Digital Gold |
3% |
Applies to online purchase/storage |
|
Gold ETFs, SGB, Mutual Funds |
Exempt |
GST on management/service charges |
How Is GST Calculated on Gold Purchases?
GST is levied on the total value of gold, including making
charges for jewellery. For interstate transactions, the 3% Integrated GST
(IGST) applies, while for intrastate, 1.5% CGST and 1.5% SGST each are applied.
Example: Gold Price Before and After GST
|
Particulars |
Before GST (₹) |
Under GST (₹) |
|
Base Price (10gm Gold) |
1,00,000 |
1,00,000 |
|
Add: Service Tax (1%) |
1,000 |
Nil |
|
Assessable Value for VAT |
1,01,000 |
1,00,000 |
|
Add: VAT (1%) |
1,010 |
Nil |
|
Assessable Value for GST |
- |
1,00,000 |
|
Add: GST on Gold (3%) |
Nil |
3,000 |
|
Total Value of Gold |
1,02,010 |
1,03,000 |
Impact on Traders and Consumers
- Input
Tax Credit (ITC) is available for businesses on gold used for
manufacturing or resale, but not for personal purchase.
- Gold
imports are subject to 3% IGST and additional customs duties.
- There
is no GST on exchanging old gold jewellery for new; however, GST applies
when old gold is resold by a dealer.
- Export
of gold is zero-rated under GST law.
Key Updates from GST Council 2025
- Retained
the 3% GST on gold and silver, and 5% on making charges despite
large-scale tax reforms.
- The
restructuring to a two-slab GST system (5% and 18%) does not affect the
gold segment.
- The
continuity in gold GST rates reassures jewellers and buyers ahead of
festive demand.
Conclusion
The GST on gold in India continues at 3%,
safeguarding consumer interests and market stability. Buyers should factor both
gold value GST and making charges GST when purchasing new jewellery or gold
items in 2025.
