GST on gold and jewellery
Gold, silver and jewellery carry 3% GST — coins, bars and finished jewellery alike. On a normal jewellery purchase the 3% applies to the whole bill, making charges included. The rate was left unchanged when the other slabs were restructured in September 2025.
| What you are buying or doing | GST |
|---|---|
| Gold or silver coins, bars and biscuits | 3% |
| Finished jewellery from a jeweller — gold, silver, platinum or diamond | 3% on the full price, making charges included |
| Digital gold bought through an app | 3% |
| A goldsmith making or repairing jewellery from your own gold (job work) | 5% on the labour charge |
| Selling your own old gold to a jeweller | No GST |
| Sovereign Gold Bonds, gold ETFs and gold mutual funds | No GST — these are securities, not goods |
A worked example
Say you buy a 10-gram 22-carat chain. Gold prices change daily, so the ₹9,000 per gram below is only an illustration — swap in the rate on your bill.
| Line on the bill | Amount |
|---|---|
| Gold value — 10 g × ₹9,000 | ₹90,000 |
| Making charges — 12% | ₹10,800 |
| Value before tax | ₹1,00,800 |
| GST at 3% (₹1,512 CGST + ₹1,512 SGST) | ₹3,024 |
| You pay | ₹1,03,824 |
Bought from a jeweller in your own state, the 3% shows as 1.5% CGST + 1.5% SGST. Ordered online from a seller in another state, it shows as a single 3% IGST line. The total is the same either way.
Making charges: 3% or 5%?
This is the most common question on a jewellery bill, and the source of most confusion.
When a jeweller sells you a finished piece, the making charge is part of the price of that jewellery — you are buying one thing, a chain, not gold plus a separate service. So the whole bill is generally taxed at the jewellery rate of 3%, whether or not the making charge is printed on its own line.
The 5% rate is for job work: when you hand your own gold to a goldsmith to make a new piece, resize a ring or repair a chain, and pay only for the labour. Jewellers also pay 5% to the karigars who make pieces for them.
Some jewellers nonetheless print 5% against the making-charge line on a retail bill. On the example above that would cost ₹216 more (₹2,700 on the gold plus ₹540 on making, instead of ₹3,024). It is not a large sum, but if your bill shows it, it is fair to ask the jeweller why.
Exchanging old gold for new
When you trade in old jewellery against a new piece, two separate things happen:
- You sell your old gold. As an individual you are not selling in the course of a business, so there is no GST on this part.
- The jeweller sells you the new piece. GST is charged on the full value of the new jewellery. The value of your old gold counts as part of your payment — it does not reduce the amount the 3% is calculated on.
Using the chain above: if your old gold is valued at ₹60,000, the GST is still ₹3,024 on ₹1,00,800, and you pay the balance of ₹43,824 (₹1,03,824 − ₹60,000).
Frequently asked
Is there GST on gold bought as an investment?
Physical gold — coins, bars, digital gold — carries 3% when you buy it. Sovereign Gold Bonds, gold ETFs and gold mutual funds are securities rather than goods, so GST does not apply to them. Each has its own income-tax treatment when you sell.
Do I pay GST when I sell gold?
Not as an individual selling your own jewellery or coins. Any gain may be taxable as capital gains under income tax, which is a separate matter from GST.
Is diamond jewellery taxed differently?
No — finished diamond jewellery is jewellery, and carries the same 3%. Loose diamonds and precious stones have their own, much lower rates, which matter mainly to the trade.
Is the hallmarking fee part of the GST on jewellery?
Hallmarking is a separate service. If a jeweller shows it as its own charge, it is taxed as a service rather than at the 3% jewellery rate, so it can appear as a separate small tax line.
Before you rely on this
This page is a plain-language reference, not the official schedule. The treatment of a specific bill can depend on how the jeweller structures the sale, and practice on making charges and old-gold exchange still varies. For a business invoice, an input tax credit claim or a disputed bill, confirm against the current CBIC notification or ask a qualified tax professional. If something here looks wrong, tell us.