GST Gold Rate in India 2026: Charges on Jewellery, Coins, Digital Gold
Gold buying in India is often emotional, but the pricing behind it is completely structured. One of the biggest components that directly impacts the final cost is GST. Whether someone is buying jewellery for a wedding, investing in coins, or exploring digital gold, understanding gold GST rate is essential to avoid overpaying. Many buyers assume gold has a single tax rate, but in reality, it is split across different components.
Gold GST Rate in India (2026)
The GST on gold in India is 3 percent on the total value of gold and 5 percent on making charges for jewellery, making it a standardised tax structure across the country as of April 2026.
Here are the Key GST components of Gold –
- Gold purchase (bars, coins, jewellery): 3 percent GST on the value of gold
- Making charges (only for jewellery): 5 percent GST applied separately
- Total cost impact: Final jewellery price includes both 3 percent on gold value and 5 percent on making charges
- HSN codes used:
- Gold (bullion): 7108
- Gold jewellery: 7113
- Uniform taxation: Same GST rates apply across all states in India
Things You Must Know Before Paying GST on Gold
Before buying gold, you must know the basic calculation principle of GST gold rates.
- GST is not charged on the total bill in one go
It is split. You pay tax separately on gold value and on making charges, which is why jewellery feels more expensive than expected. - Making charges quietly increase your final price
Even if the gold rate looks reasonable, high making charges can significantly raise the total cost because they are taxed separately. - Coins and bars are usually cheaper than jewellery
They do not include making charges, so you avoid the extra 5% GST component applied on labour. - Your final price depends more on structure than rate
Two jewellers can offer the same gold rate but very different total prices due to variation in making charges. - Exchanging old gold does not eliminate GST
You still pay GST on the value difference and on the new making charges added to the jewellery. - Always check the bill breakup, not just the total amount
A proper invoice should clearly show gold value, making charges, and GST applied on both separately.
GST on Different Types of Gold in India (2026)
GST on gold in India depends on the type of gold you buy, but the base rule remains simple: 3 percent on gold value and 5 percent on jewellery making charges where applicable.
| Type of Gold | Purity / Form | GST Rate | Applicable On |
| Gold jewellery (22K, 18K) | Physical jewellery | 3% + 5% | 3% on gold value + 5% on making charges |
| Gold coins and bars (24K) | Physical gold | 3% | Total purchase value |
| Digital gold | Online gold holdings | 3% | Purchase value |
| Gold ETFs | Market-linked investment | 0% | Investment value |
| Sovereign Gold Bonds (SGBs) | Government-backed bonds | 0% | Purchase value |
| Gold exchange (old for new jewellery) | Physical exchange | 3% + 5% | 3% on price difference + 5% on new making charges |
| Gold repair and polishing | Service | 5% | Service charges |
| Job work (manufacturing) | Industry service | 1.5% | Job work charges |
Check out the difference between gold ETFs and physical gold.
How is GST Calculated on Gold in India (2026)
GST on gold is calculated separately on the gold value and on the making charges, and then added to your final bill.
Step-by-Step Gold GST Calculation
1. Calculate gold value
Gold value = Weight × Rate per gram
2. Apply GST on gold (3 percent)
GST on gold = 3 percent of gold value
3. Calculate making charges (for jewellery)
Making charges = Cost charged by jeweller, either fixed or per gram
4. Apply GST on making charges (5 percent)
GST on making = 5 percent of making charges
5. Final price
Final amount = Gold value + GST on gold + Making charges + GST on making
Let us take a simple jewellery purchase:
- Gold weight: 8 grams
- Gold rate: ₹7,200 per gram
- Making charges: ₹650 per gram
- Step 1: Gold value
8 × 7,200 = ₹57,600 - Step 2: GST on gold (3 percent)
3 percent of 57,600 = ₹1,728 - Step 3: Making charges
8 × 650 = ₹5,200 - Step 4: GST on making (5 percent)
5 percent of 5,200 = ₹260 - Final price you pay:
57,600 + 1,728 + 5,200 + 260 = ₹64,788
Also check the GST on silver currently!
GST Gold Rate Latest Rules (India 2026)
As of 2026, GST on gold and jewellery making charges are both calculated separately and added to the final bill.
Latest GST Rules on Gold (2026)
| Rule / Component | GST Rate | How It Applies | What You Should Know |
| Gold purchase (bars, coins, jewellery) | 3% | On total gold value | Same rate for 22K and 24K gold |
| Making charges (jewellery) | 5% | On labour or crafting cost | Increases final jewellery price |
| Digital gold | 3% | On purchase value | Treated like physical gold |
| Gold exchange (old for new) | 3% | Only on price difference | Plus 5% on new making charges |
| Sovereign Gold Bonds (SGBs) | 0% | On investment value | No GST at purchase stage |
| Gold ETFs | 0% | On investment value | GST applies only to brokerage or services |
| Gold repair and polishing | 5% | On service charges | Considered a service under GST |
| Job work (manufacturing services) | 1.5% | On job work services | Lower rate for industry processes |
- Gold Tax in India: Total tax includes 3% GST and approximately 6% total import duty (5% Basic Customs Duty + 1% AIDC).
- Gold HSN Code: Raw gold (bars/coins) is 7108, and gold jewellery is 7113.
Types of Gold Investment Schemes in India (2026)
Gold investment schemes in India include Sovereign Gold Bonds, Gold ETFs, Gold Mutual Funds, digital gold, and physical gold, each offering different returns, liquidity, and taxation benefits.
- Sovereign Gold Bonds (SGBs): Government-backed bonds that offer 2.5 percent annual interest along with gold price returns and no GST, making them ideal for long-term investment.
- Gold ETFs: Exchange-traded funds that track gold prices, offer high liquidity, and require a demat account with no GST on purchase.
- Gold Mutual Funds: Funds that invest in Gold ETFs, allow SIP investments without a demat account, and provide market-linked returns.
- Digital Gold: Online gold investment that lets you buy small amounts easily, but attracts 3 percent GST on purchase.
- Physical Gold (coins and bars): Direct ownership of 24K gold for investment purposes, with 3 percent GST and storage responsibility.
- Jewellery Saving Schemes: Monthly instalment plans by jewellers that help accumulate funds for jewellery purchases, usually benefiting from reduced making charges, but not ideal for pure investment.
Compare smart alternatives like FD and RD to balance safety and returns.
GST on Gold – FAQs
There are four types, CGST, SGST, IGST, and UTGST, and they depend on whether a transaction happens within a state or between states.
No, there has been no change, gold is still taxed at 3 percent on its value and 5 percent on making charges as of April 2026.
It changes every day, but if the rate is around ₹7,000 per gram, then 10 grams would roughly cost ₹70,000 before GST and making charges.
Yes, even pure 24K gold is taxed, and you pay 3 percent GST when you buy it.
You pay 3 percent GST on the gold value, and if it is jewellery, another 5 percent is added on making charges.
The rate stays the same, 3 percent on the gold value and 5 percent on making charges if it is jewellery.
For gold jewellery, it is neither, making charges are taxed at 5 percent.
The highest GST slab is usually for luxury or sin goods like expensive cars and tobacco, not for gold.
The most common types are 24K gold (99.9 percent pure), 22K gold (91.6 percent pure), and 18K gold (75 percent pure).
The most popular options include Sovereign Gold Bonds, Gold ETFs, and Gold Mutual Funds.
Yes, making charges are taxed separately at 5 percent, increasing the final jewellery cost.
No, gold coins and bars usually do not include making charges, so only 3 percent GST is applied.
The 24 carat gold GST rate in India is 3 percent on the gold value at the time of purchase.
The 22 carat gold GST rate in India is 3 percent on the gold value, with an additional 5 percent GST on making charges for jewellery.
