As per the Union Budget 2024-2025, the Government of India has reduced customs duties on gold and silver to 6% from the previous 15%.
The overall custom duty on Gold has been lowered from 15% to 6% with the basic customs duty on Gold reduced from 10% to 5%, and the Agriculture Infrastructure and Development Cess reduced from 5% to 1%.
This adjustment in custom duty and cess has effectively reduced the overall taxes on gold and silver to 6% from the previous 15%, including GST.
What is GST on Gold in India?
GST on gold in India is set at a 3% rate, which applies to the value of gold, gold jewellery, gold coins and gold bars.
Under Section 7 of the CGST Act, the supply of gold (without any job work) is considered the supply of goods. GST on gold is as follows:
Particulars | HSN Code | GST Rate |
| (1) Precious stones (other than diamonds) and semi-precious stones, whether or not worked or graded but not strung, mounted or set
(2) Ungraded precious stones (other than diamonds) and semi-precious stones, temporarily strung for convenience of transport (includes synthetic or reconstructed stones, apart from unworked or simply sawn or roughly shaped) | 7103, 7104 | 0.25% |
| Diamond, gold, pearls, silver, or articles of jewellery of silver or gold, and so on, including synthetic or reconstructed stones, unworked or simply sawn or roughly shaped | 7101, 7102, 7106, 7107, 7108, 7109, 7111, 7113, 7114, 7116, 7118 | 3% |
| Job work in relation to cut and polished diamonds, plain or studded jewellery of gold, silver and so on | 9988 | 1.5% |
GST Rate on Purchase of Gold in India
The GST rate on gold in India is set at 3% (1.5% CGST + 1.5% SGST) on the value of gold. For example, on a gold purchase worth ₹1,00,000, the total GST payable is ₹3,000. This gold GST rate applies to all forms of gold, including jewellery, coins, and bars. Additionally, a 5% GST is applicable on making charges for gold jewellery.
The current 3% gold GST rate replaced the earlier tax structure of 1% VAT and 1% service tax under the pre-GST regime, simplifying taxation and standardizing rates for gold transactions across the country.
22 Carat Gold GST Rate in India in 2025
22-carat gold GST rate in India is 3% of the gold’s value. This means that for every Rs. 1000 worth of 24-carat gold purchased, you will pay an additional Rs. 30 as GST. The making charges for any jewellery created using 22-carat gold will attract a separate GST of 5%.
24 Carat Gold GST Rate in India in 2025
24-carat gold GST rate in India is 3% of the gold’s value. This means that for every Rs. 100 worth of 24-carat gold purchased, you will pay an additional Rs. 3 as GST on gold jewellery. It’s essential to note that this is the GST rate on the gold itself. Any making charges applied to the gold when creating jewellery will attract a separate GST of 5%.
GST on Ready-Made Jewellery (Ornaments)
When purchasing ready-made gold jewellery, consumers pay a 3% GST on the total value of the jewellery. This includes both the price of the gold and the making charges. It’s important to note that this is considered a composite supply, meaning the gold and the craftsmanship are treated as a single product for taxation purposes.
GST on Gold Bars and Coins
For gold bars and coins, the GST rate is also 3%, but it’s applied solely to the value of the gold itself. Since there are no additional services or making charges involved, the tax calculation is straightforward.
GST on Second-Hand Gold
The GST treatment for second-hand gold varies depending on whether the seller is a registered dealer or an individual.
- Registered Dealers: When a registered dealer sells second-hand gold, GST rate of 3% is applicable on the sale price.
- Individuals: Individuals selling second-hand gold generally don’t pay GST, as they are not considered businesses. However, the buyer (usually a registered jeweller) will be liable for GST on the purchase.
GST on Custom-Made Jewellery
When customers provide their gold for making custom jewellery, the process involves two separate GST components:
- GST on gold: The 3% GST applies to the value of the gold provided by the customer.
- GST on making charges: A 5% GST is levied on the making charges incurred by the customer.
FAQs
Is the GST Rate on Gold the Same Across India?
The standard GST rate is 3% on gold value. This rate is charged as a total of CGST and SGST (which is 1.5% each) or just the IGST rate of 3% depending on whether the sale is intrastate or interstate respectively.
Does the GST rate on gold vary based on carat (e.g., 22k vs. 24k gold)?
No, the GST rate on gold is 3% regardless of whether the gold is 22-carat, 24-carat, or any other purity.