Understanding New GST Rates on Gold in India: A Comprehensive Guide
- GST on gold in India is applicable at 3% on gold jewellery and other specified gold products as per the applicable GST classification.
- GST on gold jewellery is charged at 3% on the total transaction value, including applicable making charges when supplied as part of the jewellery sale.
- The GST rate on gold depends on the classification of the product and transaction type.
- Gold products may have different GST treatment based on the nature of supply and applicable GST provisions.
- Export of gold is treated as a zero-rated supply under GST, subject to applicable conditions.
Gold holds a special place in Indian culture, symbolizing wealth and prosperity. Understanding the gold gst rate is essential for both buyers and sellers. This article simplifies the GST rates on various forms of gold, including jewellery, coins, and bars, making it accessible for everyone.
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GST on Gold: An Overview
In India, GST on gold in India is applicable at 3% on gold jewellery and other specified gold products as per the applicable GST classification. Gold products such as jewellery, coins, and bars are taxed based on their applicable HSN classification.
For gold jewellery and gold ornaments, GST is generally charged at 3% on the total transaction value, including applicable making charges when supplied as part of the jewellery sale.
A separate GST treatment may apply when making charges are supplied independently as a service.
GST Rate on Gold and Gold Jewellery in India
The GST on gold and gold jewellery continues to depend on the product classification under the applicable HSN code.
Gold and gold jewellery continue to attract the applicable GST rates, and no GST rate revision has been introduced for gold under the recent GST rate changes effective from 22 September 2025.
The applicable GST structure for gold products is based on the nature of the product and classification.
GST on Gold and Gold Jewellery (HSN-wise)
| HSN Code | Description | GST Rate (After 22nd Sept 2025) |
GST Rate (Before 22nd Sept 2025) |
|---|---|---|---|
| 71081100 | Gold powder | 3% | 3% |
| 71081200 | Other unwrought forms of gold | 3% | 3% |
| 71081300 | Other semi-manufactured forms of gold | 3% | 3% |
| 71082000 | Monetary gold | 3% | 3% |
| 71131910 | Jewellery of gold, unstudded | 3% | 3% |
| 71131920 | Jewellery of gold set with pearls | 3% | 3% |
| 71131930 | Jewellery of gold set with diamonds | 3% | 3% |
| 71131940 | Jewellery of gold set with other precious and semi-precious stones | 3% | 3% |
HSN Code
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(Before 22nd Sept 2025)
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(After 22nd Sept 2025)
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(Before 22nd Sept 2025)
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Description
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(After 22nd Sept 2025)
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(Before 22nd Sept 2025)
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(After 22nd Sept 2025)
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(Before 22nd Sept 2025)
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Description
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(After 22nd Sept 2025)
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(Before 22nd Sept 2025)
HSN Code
Description
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(After 22nd Sept 2025)
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(Before 22nd Sept 2025)
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GST on Making Charges
When crafting gold jewellery, artisans add making charges for designing and manufacturing the jewellery piece. The GST treatment of making charges depends on how they are supplied.
When making charges are included as part of the gold jewellery sale, GST is generally charged at 3% on the total transaction value, including the applicable making charges.
If making charges are supplied separately as an independent service, the applicable GST rate may differ based on the nature and classification of the service.
For example, if a gold necklace is sold for ₹5,00,000, including ₹5,000 as making charges, GST is generally calculated on the total jewellery value as per applicable GST provisions.
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How to Calculate GST on Gold Jewellery
To understand how GST is applied to gold jewellery, consider the following example:
- Price of gold (10 grams): ₹50,000
- Making charges: ₹5,000
- Total cost before GST: ₹55,000
Now, let’s calculate the GST:
- GST on total jewellery value: 3% of ₹55,000 = ₹1,650
- Total GST: ₹1,650
- Final price: ₹55,000 + ₹1,650 = ₹56,650
Therefore, the buyer would pay ₹56,650 in total for the gold jewellery.
Also Know About: The Impact of GST on Gold in India and Gold Jewellery
Impact of GST on Gold Jewellery Prices
The introduction of GST has streamlined the taxation process for gold, replacing multiple taxes like VAT and service tax. While the GST rate is slightly higher than the previous tax structure, it has brought uniformity and transparency to gold pricing across India.
GST on Gold Imports and Exports
- Imports: Import of gold into India attracts applicable customs duties and IGST as per the prevailing customs notifications and classification. The applicable import tax structure depends on the nature of the gold product and relevant customs provisions.
- Exports: Exports of gold are treated as zero-rated supplies under GST. Exporters can supply goods without payment of GST under the applicable conditions or claim eligible refunds as per GST provisions.
Special Considerations
- Digital Gold: GST applicability on digital gold depends on the nature of the transaction and applicable GST provisions. The applicable GST treatment should be determined based on how the digital gold supply is structured.
- Old Gold Exchange: In old gold exchange transactions, GST applicability depends on the nature of the transaction between the customer and the jeweller. When new gold jewellery is supplied, GST is generally charged at 3% on the value of the jewellery supplied, including applicable making charges when they form part of the jewellery sale.
Unique Features of BUSY Accounting Software For the Gold Industry
- Set and update 22 carat and 24 carat gold gst rates daily according to the market prices.
- Automatically calculate prices based on item weight and purity.
- Add detailed information for each jewellery item, including weight, design, stone type, carat, and making charges.
- Manage both fixed and weight-based making charges easily.
- Generate barcode labels for each jewellery item for faster billing and tracking.
- Maintain separate stock records for gold, silver, and other precious metals.
- Track inventory in dual units, such as grams and pieces.
- Keep purity-wise stock records (e.g., 18K, 22K, 24K).
Conclusion
Understanding the GST rates and HSN codes associated with gold helps buyers make informed decisions and ensures compliance with tax regulations. Whether purchasing gold jewellery, coins, or bars, knowing the applicable taxes and charges ensures transparency and aids in financial planning.
