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GST on Gold: 3% on Jewellery, Coins & Bars
GST on gold is 3% of the value, whether you buy 22 carat jewellery, 24 carat coins or bars. Within a state it is charged as 1.5% CGST + 1.5% SGST, and on an inter-State sale as 3% IGST. GST 2.0 (September 2025) did not change this rate.
Applicable GST Rate
Articles of jewellery and parts thereof, of precious metal
Gold & Jewellery GST rate chart
| Item or service | HSN / SAC | GST |
|---|---|---|
| Gold bars, biscuits, unwrought or semi-manufactured gold | 7108 | 3% |
| Gold jewellery (18K, 22K, 24K) | 7113 | 3% |
| Gold coins | 7108 / 7118 | 3% |
| Making charges included in the price of ready jewellery | 7113 | 3% (part of jewellery value) |
| Job work on gold owned by someone else (e.g. a karigar making jewellery from your gold) | SAC 9988 | 5% |
| Imitation jewellery | 7117 | 3% |
Is GST on gold making charges 3% or 5%?
When a jeweller sells you finished jewellery, the sale is one supply of goods under HSN 7113. The making charge is part of the price of that jewellery, so the whole invoice, gold value plus making charges, is taxed at 3%. Many jewellers show making charges as a separate line on the bill, but that does not turn them into a separate 5% service.
The 5% rate applies to job work: when a goldsmith or karigar makes or alters jewellery from gold that belongs to someone else, such as gold you hand over or gold a jeweller sends to a karigar. If your bill shows 5% on making charges for ready jewellery, ask the jeweller how they classified the supply.
22 carat gold GST calculation example
Assume a 22 carat chain with a gold value of ₹1,00,000 and making charges of ₹10,000 (illustrative figures, not today's gold price). The taxable value is ₹1,10,000.
GST at 3% = ₹3,300. Within the same state that is ₹1,650 CGST + ₹1,650 SGST. The total bill is ₹1,13,300. The karat does not change the rate: 18K, 22K and 24K are all taxed at 3% of value.
Digital gold, gold bonds and selling old gold
Digital gold sold by platforms backed by physical gold attracts 3% GST on the purchase value, as it is a purchase of gold. Sovereign Gold Bonds are government securities, so GST does not apply to them.
An individual selling their own old jewellery is not making a supply in the course of business, so they do not charge GST. A registered jeweller buying old gold has its own GST treatment for resale.
Can a business claim input tax credit on gold?
A registered jeweller or bullion dealer can claim ITC of the 3% paid on gold bought for resale or manufacture. Gold bought by a business for personal use, or as gifts, is not eligible. Individuals buying jewellery for themselves cannot claim GST back.