GST on gold and jewellery
Updated 11 October 2026
Gold, silver and jewellery carry 3% GST: 1.5% CGST plus 1.5% SGST when you buy in your own state, or 3% IGST across states. When you buy jewellery from a jeweller, the 3% applies to the whole bill, making charges included, whether or not they are shown separately. GST 2.0 in September 2025 kept these special rates unchanged.
GST rates on gold, silver and gems
| Item | GST |
|---|---|
| Gold bars, biscuits and coins | 3% |
| Gold, silver and platinum jewellery | 3% of the total value, making charges included |
| Silver bars, coins and articles | 3% |
| Cut and polished diamonds and precious stones | 3% |
| Rough (unworked) diamonds | 0.25% |
| Imitation jewellery | 3% |
| Job work on jewellery (labour charged to a registered jeweller) | 5% |
| Digital gold | 3% on each purchase |
| Gold ETF and gold fund units, Sovereign Gold Bonds | No GST on the units or bonds |
When the main slabs were cut to 5%, 18% and 40% on 22 September 2025, the 3% rate for precious metals and the 0.25% rate for rough diamonds were kept as special rates. See GST rates for the full structure.
Making charges: 3% or 5%?
Many websites say gold is taxed at 3% and making charges at 5%. For an ordinary purchase from a jeweller, that is not what the official position says. The GST Council's sectoral FAQ on gems and jewellery states that GST is payable at 3% of the total transaction value of jewellery, whether the making charge is shown separately or not. Making charges are part of the price of the jewellery you buy.
The 5% rate is for job work. When a registered jeweller hands gold to a karigar (artisan) who only adds labour, the karigar, if registered, charges 5% on his job charges, and the jeweller claims it back as input tax credit. If you give your own gold to a goldsmith and pay only for the work, you are buying a service, not jewellery. A goldsmith who is not GST-registered charges no GST at all. For registered goldsmiths, an advance ruling in Kerala on repair and similar work applied 5% where the gold belonged to a registered business and 18% where it belonged to an unregistered customer. Ask for the rate to be shown on the bill.
Exchanging or selling old gold
- Selling your old jewellery for cash: an individual selling personal jewellery is not running a business, so no GST arises on that sale. Income tax on any gain may apply (see capital gains tax).
- Exchanging old gold for new jewellery: GST is generally worked out on the full value of the new piece, and the value of your old gold is then deducted from what you pay. It is not charged only on the cash difference. Ask for the new item's value, the GST and the old gold credit to be shown as separate lines.
- Jewellers reselling second-hand pieces as they are: an advance ruling in Karnataka allowed GST on the jeweller's margin only, where the piece is not melted or remade.
Coins, digital gold, ETFs and SGBs
Gold coins and bars from a jeweller or bank carry 3% GST, like jewellery but without making charges. Digital gold sold through apps is backed by physical gold, so 3% GST is added to each purchase. Gold ETFs and gold mutual funds are securities: there is no GST on buying or selling the units, though GST is included in the fund's expense charges. Sovereign Gold Bonds carry no GST. For an investor, the 3% on physical or digital gold is a cost the price must recover before the purchase shows a gain.
Gold value: 20 × ₹10,000 = ₹2,00,000
Making charges: 12% of ₹2,00,000 = ₹24,000
Taxable value: ₹2,24,000
GST at 3%: ₹6,720 (CGST ₹3,360 + SGST ₹3,360)
Bill total: ₹2,30,720
A bill that charged 3% on the gold and 5% on the making would show GST of ₹6,000 + ₹1,200 = ₹7,200, which is ₹480 more. If you also hand over old gold valued at ₹80,000, the GST stays ₹6,720 and you pay ₹2,30,720 minus ₹80,000 = ₹1,50,720.
What to check on a jewellery bill
- The jeweller's GSTIN, and the HSN code (7113 for jewellery of precious metal, 7108 for gold bars and coins). Our guide to HSN and SAC codes explains them.
- Weight, purity (for example 22K or 916), rate per gram, making charges and the value of any stones, shown separately.
- GST split as 1.5% CGST and 1.5% SGST within the state, or 3% IGST from another state.
- The hallmark and its HUID number for hallmarked jewellery.
The GST calculator works out 3% on any amount, or strips it out of a GST-inclusive price. Rates are listed in the goods rate schedules on the CBIC GST site.