GST Rate on Gold Jewellery, Coins, & Biscuits in India 2026

Investment in Gold ETF units does not attract GST on the investment amount itself. However, GST may apply on fund management and related service charges.

Under the applicable GST rate notifications issued under the CGST Act, physical gold is generally taxable at 3%. GST is generally payable on jewellery making charges at the applicable GST rate under the prevailing GST framework. Where making charges are billed separately by the jeweller, they are commonly taxed at 5%, subject to the nature of supply and applicable law.

Whether you want to buy festive jewellery, invest in physical/digital gold/ETFs, or buy gold biscuits or coins, you must understand how GST on Gold is calculated to avoid billing surprises. In today’s guide, we have discussed the current gold GST rates in India to provide you with a clear insight into gold taxation systems and related compliance.  

Understanding GST on Gold: Its Impact on Gold Purchasing Rate

Under the CGST Act 2017, all physical gold in India is taxed at a standard 3% GST based on its actual value, no matter how pure the metal is. However, while the metal itself is taxed at 3%, it is important to note that if you are buying gold jewellery, a separate 5% GST is applied to the crafting and making charges. So, if you are planning to purchase gold jewellery in India, keep in mind that these taxes will increase your overall gold purchasing rate at the checkout.

But, the real question is…

How Does GST Actually Impact Your Final Cost?

Let’s put it simply.

When you buy jewellery, the GST on gold applies in two distinct tiers. 

1. The 3% GST applies to the raw metal value (irrespective of the purity or form, e.g., 22/24 carat, bars, coins, or biscuits) 
2. The jeweller adds a 5% GST as the making charges (labour and wastage costs) while crafting the ornament. 
3. If your jewellery contains any studded gemstone or specified precious/semi-precious stones, they typically attract an additional 0.25% GST.

GST Rate on Gold Jewellery: Calculating The Final Price (Invoice)

So, the total amount you will pay after the gold GST rate application on your jewellery is Rs. 593750 (including the making charges and gold GST percentage).

3 Things to Keep in Mind When Purchasing Gold Jewellery

1. The applicable GST percentage remains unchanged for 14K, 18K, 22K, or 24K gold. However, you need to pay a higher amount of tax on 24K gold due to its higher base price.
2. Note that you cannot claim a refund on the GST paid if you are buying gold for your personal use.
3. ETFs and gold mutual funds are generally exempt from GST, though digital gold purchases typically incur a 3% GST on the invested amount. 

Gold GST Rates in India 2026 (Updated)

Let’s have a detailed look at how the GST on gold applies to physical and digital gold, ETFs, investment schemes, and exchange.  

GST on 24 Carat Gold

Currently, the GST on 24 Carat gold is a flat 3% on the total market value. This GST rate applies to all forms of pure gold, including bars, biscuits, and coins.

GST Rate on 22 Carat Gold

A flat 3% GST applies to the current market value of 22 carat gold.

GST on Digital Gold & ETFs in India

Digital gold transactions involving delivery or ownership of underlying gold generally attract GST similar to physical gold. However, gold ETFs are exempt from GST. Kindly note that both digital gold and ETFs attract a flat 12.5% Long-Term Capital Gains (LTCG) tax if held for more than 24 months and 12 months, respectively. For Short-Term Capital Gains (STCG), both digital gold and ETFs are taxed at your regular income tax slab rates. 

Pro tip: Opt for ETFs if you are planning for cost-efficient long-term investments. (due to the absence of entry-level taxes)

GST Rate on Gold Investment Schemes

The gold GST rate varies significantly depending on the type of investment scheme. 

For example, Sovereign Gold Bonds (SGBs) are exempt from GST on the gold value. You only need to pay an 18% GST on the brokerage charges. Also, the standard GST rate of 18% applies to all service/management fees related to gold ETFs/mutiual funds, though they are primarily exempt from the applicable underlying gold GST rate in India.

GST for Gold Exchange

No GST charge is applicable on the value of your old gold when you exchange old gold for new jewellery. All you need to pay is the standard 3% GST on the net difference between the prevailing market price of the new gold and the exchange value of your old gold. However, an additional 5% GST will be applied to the making charges of the new piece of jewellery. 

Here’s a Quick Estimated Transaction Breakdown for You

Suppose you purchase a new piece of jewellery worth Rs. 1,50,000 and exchange your old gold ornament worth Rs. 50,000. So, if the making charges for your new jewellery are Rs. 15,000, the final invoice amount you will pay is as shown below.

Also, make sure that you get a transparent tax invoice from the jeweller clearly mentioning the old gold’s value and listing the applicable GST on the net gold value and making charges.

Further, you have all the rights to dispute the invoice issued to you if you find that the jeweller has wrongfully calculated the applicable GST on the entire gross value of the new piece of jewellery.

However, kindly note that exchanging very old gold may trigger Capital Gains Tax from the Income Tax Department on the appreciated value.

Different Rates of GST on Gold Ornaments, Biscuits, Coins, & Bars

In India, all forms of physical gold incur a flat 3% GST on the intrinsic value of the gold. However, an additional 5% GST is charged on the making charges of the gold ornaments, which surges the total tax.

GST on Gold Ornaments

• Flat 3% GST on the market value of the gold (as a metal)
• 5% GST on the making charges

GST on Gold Coins

• 3% GST applies to the purchase value of the gold coin (irrespective of the purity of the metal)

GST on Gold Biscuits/Bars

• Flat 3% GST applies to the total market value of the gold biscuit/bar
• No GST applicable on the making charges 

Customs Duty GST on Gold in India

This includes the taxes that apply when you import gold or carry it into India from a foreign land. Below is a breakdown of the duty rates.

When gold is imported into India or brought into the country by eligible passengers, customs duties and applicable taxes may be levied in accordance with the prevailing customs laws and government notifications.

Import duties on gold are revised by the Central Government from time to time through notifications issued under the applicable customs laws. Similarly, the applicability of Integrated GST (IGST), concessional duty schemes, and passenger baggage concessions may change based on amendments announced by the Government.

Travellers and importers should verify the latest customs notifications, baggage rules, and applicable duty rates before importing or carrying gold into India. Where required, it is advisable to consult the relevant customs authorities or a qualified tax professional to determine the applicable duties and compliance requirements.

What is Gold HSN Code: An Overview

The Harmonised System of Nomenclature (HSN) code refers to an internationally standardised numerical system used to identify and classify goods. Developed by the World Customs Organisation (WCO), the HSN code is assigned to 5000+ products to ensure a uniform classification for taxation, customs, and international trade.

In India, HSN codes are mandatory (will talk about the mandatory requirements below) for the purpose of systematic tax assessment under the GST. Since the correct GST rate for any product depends on the specific HSN code assigned to it, businesses in India must declare the HSN codes on B2B and B2C tax invoices.

How Do HSN Codes Work?

HSN codes typically have 2 to 8 digits and are broken down hierarchically for specific product categorisation during trading and contain 21 sections divided into 99 overarching chapters.

For example: 

If the HSN code for Basmati Rice is 1006 30 10, it means:

10: Cereal Chapter

06: Rice Heading

30: Semi-milled/wolly milled rice

10: Basmati Rice Item Code

The Mandatory HSN Digit Requirements in India

Key Compliance Requirements Breakdown

If you own a gold business in India, you need to adhere to the compliance requirements for GST on gold that include business/company registrations, issuing HSN-coded tax invoices, filing periodic returns, generating e-way bills for major shipments, and more. 

5 Compliance Tips for Gold Jewellery Businesses

1. Registered gold jewellery businesses are required to comply with applicable GST return filing requirements, which include periodic returns such as GSTR-1 and GSTR-3B. Further, annual return requirements under GSTR-9 may apply depending on the applicable turnover threshold and government notifications for the relevant financial year. 
2. Gold jewellery covered under mandatory hallmarking requirements should carry the prescribed BIS Hallmark, purity grade, and six-digit HUID (Hallmark Unique Identification) number. Non-compliance may attract penalties and enforcement action under applicable BIS regulations.

For specified high-value transactions which involve jewellery, businesses may be required to obtain PAN details of customers as prescribed under Rule 114B of the Income Tax Rules, 1962, subject to applicable thresholds and conditions.

3. Under the Indian Tax rules, Gold jewellery businesses should ensure that invoices contain accurate product descriptions, applicable HSN classifications, and GST details as prescribed under GST laws. Classification may vary depending on the nature of goods or services supplied.

Businesses should apply GST rates applicable to the specific supply, which includes jewellery sales and any separate job work or manufacturing services, as prescribed under GST law. 

4. When a jeweller purchases old gold jewellery from an individual selling personal assets, GST implications may differ from purchases made from registered businesses. Businesses should evaluate the nature of the transaction and applicable GST provisions before determining tax treatment.

Reverse Charge Mechanism (RCM) applicability depends on the nature of the supplier and transaction. Purchases from individuals selling personal jewellery may have different GST implications compared with purchases from suppliers engaged in business activities.

5. Gold businesses should maintain appropriate customer and transaction records as required under applicable laws, including applicable KYC and record-keeping requirements. Businesses covered under reporting obligations under PMLA must comply with prescribed customer identification and record-maintenance requirements.

Availability of Input Tax Credit (ITC) for GST on Gold

Input Tax Credit (ITC) for gold GST rate in India is exclusively available to GST-registered businesses that involve purchasing gold for business purposes, such as manufacturers, dealers, and jewellers. 

Note: Individual consumers purchasing gold for personal investment or use cannot claim ITC. 

Below are The Key Eligibility Rules

• Resale and Manufacturing: Registered manufacturers and dealers can claim ITC on the 3% GST paid for their taxable business operations.
• Job/Work/Services: Jewellers can claim ITC on the 5% GST paid to independent artisans for making/repairing new pieces of jewellery (Only if the transaction is properly reported in the supplier’s GSTR-1)
• Jewellery Export: Registered gold exporters can claim a refund for the ITC on the metal and services utilised for the manufacturing of the exported jewellery. 

Exceptions and Blocked ITC

• If a jeweller purchases used gold from an unregistered individual under the special margin scheme, he/she cannot claim ITC.
• You can not claim ITC on gold coins, bars, or jewellery distributed as gifts/free samples.
• If you distribute gold items as intencives/complimentary gifts/ promotional freebies to unrelated parties, you cannot claim ITC. Conversely, under Section 17(5) of the CGST Act, if you hand out the freebies unconditionally without a direct return in business (e.g., unearned free samples), they are classified as gifts, and you cannot claim the ITC.

Getting the calculation right and maintaining accurate records is essential to avoid errors, delays and penalties while keeping operations transparent and efficient.

Stay Informed, Always!

Staying informed about gold GST rates in India not only helps you experience a seamless gold purchase without unexpected billing surprises, but also protects your rights as a buyer. GST on gold directly influences the final invoice amount and provides you with better insight into how several jewellery businesses handle compliance. We hope this guide has helped you get the gold GST rate calculation right so that you can avoid errors, delays, or penalties as a business owner and, at the same time, protect yourself from unfair business practices as a consumer. 

Frequently Asked Questions

Q1.  Who needs GST registration in the gold business?

Ans: Businesses who are engaged in the gold trade, such as jewellers, manufacturers, or bullion traders, may be required to obtain GST registration if their aggregate turnover reaches the prescribed threshold limit under the applicable GST laws. Generally, the threshold is up to Rs. 40 lakh in a financial year for eligible States and Rs. 20 lakh for certain special category States, subject to the nature of the business and the applicable GST provisions and notifications. GST registration may also become mandatory in certain situations, such as where compulsory registration provisions apply, depending on factors including the nature of supplies, inter-state transactions, e-commerce operations, or other requirements prescribed under the GST laws.

Q2. Is the GST on gold different across Indian states?

Ans: No. GST is a uniform national tax, and that’s why the GST rate on gold remains exactly the same across different Indian states. The gold GST rate across the country is composed of 1.5% CGST and 1.5% SGST, making a total of 3% of GST applicable on gold.

Q3. Where can I view the official GST Council regulations?

Ans: You can view the official GST Council regulations directly on the GST Council. However, you can also check out the CGST Rules page to view the guidelines on updated GST rules, exemptions, and statutory compliance; the Circulars/Advisory page to keep on par with the official clarifications; and the GST Acts and Rules page to look for GST variations and rules in West Bengal.

Q4. Are there any exemptions on GST for gold jewellery exchanges?

Ans: No. There is no GST exemption for the new purchase when you exchange the old gold to buy a new one. You must pay the standard GST on the total value of the new jewellery (market gold value+making charges), which includes 3% applicable GST on the net market value of the new gold (The new gold value in the current market minus the value of the old gold) and 5% GST that is applicable on the making charges of the new piece of gold jewellery. 

Q5. Do I need to provide proof of purchase for an old gold jewellery exchange?

Ans: No. It is not mandatory to provide the proof of purchase for exchanging old gold. However, since different jewellers abide by different policies, some of them may ask you for the bill. It will only speed up the exchange process for you and ensure that you get the maximum value.

Q6.  What happens if the exchanged old gold is not in good condition?

Ans: Even if your gold is damaged, broken, or in poor condition, it does not alter the intrinsic metal value. However, the jeweller might deduct around 5% to 15% in wastage charges and will separate and return any non-gold attachments such as gems, stones, threads, or enamel.