What Is the Current GST Rate on Gold Jewellery in India? (2025)
As of 2025, GST on gold jewellery in India follows a dual-rate structure:
· 3% GST on the value of the gold content (the commodity itself)
· 5% GST on making charges (the artisanal labour component)
Two different rates apply because the government separately recognises the craftsmanship involved in jewellery-making — not just the raw gold.
Note: For purchases above a threshold value from a registered jeweller, GST compliance is mandatory. Always insist on a GST-compliant bill.
How to Calculate GST on Gold Jewellery — Step-by-Step Example
Use this worked example as a reference. Suppose you are buying a gold necklace with the following details:
· Weight: 10 grams of 22K gold
· Gold rate per gram (22K): ₹6,500
· Making charges: 12% of gold value
1. Step 1 — Gold value: 10 × ₹6,500 = ₹65,000
2. Step 2 — Making charges: 12% of ₹65,000 = ₹7,800
3. Step 3 — GST on gold: 3% of ₹65,000 = ₹1,950
4. Step 4 — GST on making charges: 5% of ₹7,800 = ₹390
5. Step 5 — Total price: ₹65,000 + ₹7,800 + ₹1,950 + ₹390 = ₹75,140
Total GST on this purchase = ₹2,340 (₹1,950 + ₹390) — approximately 3.6% of the effective gold price, not a flat 3% as many buyers assume.
For accurate calculations, always check today's live gold rate before visiting your jeweller.
Check → Today's Gold Price in India
How Is GST Applied on Gold Making Charges?
Making charges are fees for the craftsmanship and labour involved in creating a jewellery piece. They are typically:
· 8%–20% of gold value, depending on complexity and brand
· Or a flat per-gram charge set by the jeweller
The 5% GST on making charges is calculated after the making charge amount is determined. For designer or branded jewellery with high making charges, this component can add significantly to the final price — which is why branded pieces often cost much more than their raw gold value.
What Was VAT on Gold Jewellery in India? Is It Still Applicable?
Before GST was introduced in July 2017, gold jewellery attracted:
· VAT (Value Added Tax): 1%–1.5%, varying by state
· Excise duty: 1% on jewellery above a certain value
After GST replaced the older tax system, VAT and excise duty on gold were abolished. The current 3% GST consolidates both into a single unified rate.
Key fact: There is no VAT on gold jewellery in India under the current tax system. If you hear older buyers mention 'VAT on gold', that is a pre-2017 concept.
What Is the Total Tax on Buying Gold Jewellery in India?
When you buy gold jewellery in India, the complete tax picture includes:
· 3% GST on the gold value
· 5% GST on making charges
· Wastage charges (1%–3%), if applicable — also subject to GST
· Import duty on gold (if buying from a jeweller who imports directly)
The effective tax rate as a percentage of the total jewellery price typically falls between 3.5% and 5%, depending on making charges and whether wastage charges apply.
GST on Gold Jewellery vs Gold Coins and Bars — What Is the Difference?
Gold coins and bars attract the same 3% GST as raw gold. However, since there are no making charges on coins and bars, the total effective tax is lower than on jewellery.
This makes coins and bars more tax-efficient for pure investment purposes. However, jewellery carries emotional and cultural value that coins cannot replace — especially for weddings, gifting, and personal adornment in India.
Related Read → Why Is Gold Used for Making Jewellery
Frequently Asked Questions (FAQs)
What is the current GST rate on gold jewellery in India?
3% GST is applied on the gold value, and 5% GST is applied on making charges separately. Both components appear on a GST-compliant bill from a registered jeweller.
How much GST is added to the total jewellery price?
It depends on the making charges percentage. Typically, the total GST adds 3.5% to 5% to the base price of the jewellery.
Is there VAT on gold jewellery in India?
No. VAT was replaced by GST in July 2017. There is no separate VAT on gold jewellery in India under the current tax system.
Do I get a GST bill when buying gold jewellery?
Yes. Any registered jeweller is required to provide a GST-compliant bill showing both GST components separately. Always insist on a proper bill — it also helps with resale and hallmark verification later.
Can I claim a GST refund on gold jewellery?
Individual buyers cannot claim GST refunds on jewellery purchases. GST input credit is only available to GST-registered businesses.
Why Is Gold Used for Making Jewellery?
Gold is the ideal metal for jewellery because of its malleability, non-reactive nature, durability and lustrous appeal, thus Gold Used for Making Jewellery. Understand 22K vs 24K and why platinum and silver are also used.
