GST on Gold Jewellery in India 2026 — Complete Breakdown
How much GST do you pay when buying gold jewellery in India in 2026? Full breakdown of the 3% GST on gold, 5% on making charges, and what the total tax impact is on your purchase.
When you buy gold jewellery in India, you pay more than just the gold rate. GST (Goods and Services Tax) adds a meaningful cost to every purchase — and understanding it helps you calculate the true price before you walk into a showroom.
GST Rate on Gold in India (2026)
| Component | GST Rate | |-----------|----------| | Gold (metal value) | 3% | | Making charges | 5% | | Hallmarking charges | 5% |
These rates have remained unchanged since GST was introduced in 2017.
How to Calculate Total GST on a Gold Jewellery Purchase
Let's say you're buying a 10-gram 22K gold chain in Kerala when the rate is ₹9,200/gram:
Step 1 — Gold value 10g × ₹9,200 = ₹92,000
Step 2 — Making charges (assume 10%) ₹92,000 × 10% = ₹9,200
Step 3 — GST on gold value ₹92,000 × 3% = ₹2,760
Step 4 — GST on making charges ₹9,200 × 5% = ₹460
Total price you pay ₹92,000 + ₹9,200 + ₹2,760 + ₹460 = ₹1,04,420
Effective GST amount: ₹3,220 (on a ₹1,01,200 base)
Does GST Apply to Old Gold Exchange?
When you exchange old gold jewellery to buy new jewellery, GST applies only on the new jewellery value minus the old gold value. The shop deducts the old gold credit before applying GST.
Example:
- New jewellery value: ₹80,000
- Old gold exchange credit: ₹30,000
- GST is charged only on ₹50,000 (the balance you're actually paying)
GST on Gold Coins and Bars
Gold coins and bars attract the same 3% GST on the metal value. Making charges typically don't apply to coins, so the effective GST impact is lower than jewellery.
Input Tax Credit (ITC) on Gold
Individual consumers cannot claim ITC on GST paid for gold jewellery — it is a consumer purchase, not a business input. Only registered gold dealers and manufacturers can claim ITC in the supply chain.
GST on Digital Gold
Digital gold purchased through apps (PhonePe, Google Pay, Paytm Gold) also attracts 3% GST. The difference is that digital gold has no making charges, so the total tax burden is lower than physical jewellery.
Is There Any Exemption from GST on Gold?
There is no GST exemption on gold purchases for individual consumers in India. Whether you buy from a small shop or a large branded chain, the rate is the same.
Temple donations of gold and gold used in certain religious ceremonies also technically attract GST at the point of purchase.
Tips to Minimise the Tax Impact
- Negotiate making charges — since GST on making charges is 5% (higher rate), lower making charges reduce your total tax outgo
- Ask for a proper bill — a GST invoice with HSN code 7113 (for jewellery) protects you and ensures the shop is paying its taxes
- Keep your bill — important for future resale or exchange; jewellers offer better rates on gold with original bills
- Compare making charges across shops — this is the most variable cost and where you can save the most
Calculate your total purchase cost with our Making Charge Calculator →