So what is GST on gold? It's 3%. Coin, chain, ring, 24 carat or 18, the jeweller adds 3% GST and that's it. GST 2.0 moved a lot of slabs on 22 September 2025 but gold wasn't one of them. If someone at the counter says "GST badh gaya hai", ask them to show you the line on the bill.
GST rate on gold, coins and related items
| What you are buying or paying for | HSN / SAC | GST |
|---|---|---|
| Gold bars, biscuits, bullion | 7108 | 3% |
| Gold coins | 7118 / 7108 | 3% |
| Gold jewellery from a shop (plain or studded) | 7113 | 3% on the full bill value |
| Silver and platinum jewellery | 7113 | 3% |
| Karigar's job work for a registered jeweller | 9988 | 5% on the labour charge |
| Rough diamonds | 7102 | 0.25% |
| Cut and polished diamonds | 7102 | 1.5% |
Rates as per Notification 9/2025-Central Tax (Rate), effective 22 September 2025. Check the HSN printed on your own invoice.
GST on gold jewellery: 3% or 5% on making charges?
Plenty of bills split the amount into "gold" and "making", and that's where people start doubting the rate. Here's how it works when you buy a finished ornament from a showroom. You're buying one item. Making is part of its price. So the 3% goes on gold value plus making, together.
Where does 5% come from, then? A karigar who works on a registered jeweller's gold and bills only his labour charges that jeweller 5%. It's a deal between two businesses. You won't normally see it on a customer bill. If yours shows 5% on making, ask the shop how they're billing it, and get the answer printed on the invoice.
Example: GST on a 10 gram chain bought in Pune
The gold rate here is made up to keep the maths clean. Use the day's rate from your jeweller.
| Gold value (10 g × ₹11,500) | ₹1,15,000.00 |
| Making charges (12%) | ₹13,800.00 |
| Taxable value | ₹1,28,800.00 |
| CGST @ 1.5% | ₹1,932.00 |
| SGST @ 1.5% | ₹1,932.00 |
| Total you pay | ₹1,32,664.00 |
|---|
Type ₹1,28,800 into the calculator at 3% and you get the same ₹3,864. Ordered from a Jaipur jeweller and couriered home? Then the whole ₹3,864 shows up as IGST.
Old gold exchange
You don't charge GST when you hand over your old bangles. You aren't a business. The shop puts 3% on the new piece and subtracts what your old gold is worth. Keep an eye on one thing: the exchange value should sit on its own line, after the GST on the new item.
Melting your own gold and getting it remade, where you pay only for the work, can be treated as a service with a different rate. Get the rate in writing before they start.
Digital gold, ETFs and bonds
Digital gold on an app attracts 3%, since real gold is being bought and kept for you. Gold ETFs and gold mutual funds are securities, so no GST when you buy. Sovereign Gold Bonds are government securities and carry no GST either.
Before you pay
Look for the jeweller's GSTIN, HSN code, weight, purity and the HUID hallmark number on the bill. A local purchase should show CGST and SGST. Anything above 3% on a normal jewellery bill deserves a question.
Frequently Asked Questions
Did GST on gold change in 2025 or 2026?
How much GST on gold purchase?
What is the GST rate on gold jewellery?
Is GST on gold ornaments different from coins?
Can I claim GST input credit on gold?
This page is general information, not tax advice. Your actual rate depends on how the supply is classified on the invoice. Sources: Notification 9/2025-Central Tax (Rate); CBIC and GJC FAQs on the gems and jewellery sector.
Last reviewed 29 October 2026.