In India, gold is not just a precious metal—it is deeply connected with tradition, investment, and emotions. Whether it is a wedding, a festival, or a safe investment, gold holds a special place in every household. However, when you receive the bill while buying jewellery, many buyers get confused after seeing GST, making charges, wastage, and other taxes.
In 2026, the tax rules on gold remain unchanged, but without proper knowledge, you could end up paying thousands of rupees extra.
How Much GST Is Charged on Gold?
In India, 3% GST is levied on the purchase of gold. This rate is the same for 24-carat, 22-carat, and 18-carat gold. Whether you buy gold jewellery, gold coins, or gold bars, the GST rate remains 3%.
For example, if the price of 10 grams of gold is ₹1,00,000, you will have to pay ₹3,000 as GST. Digital gold also attracts 3% GST, although an additional 18% GST may apply on service fees. In the case of imported gold, buyers must pay customs duty along with 3% IGST.
Understanding Making Charges
Making charges are the costs involved in crafting gold jewellery. These charges usually range between 5% and 25% of the gold value, or they may be charged as a fixed rate per gram.
For instance, if the gold value is ₹50,000 and the making charges are ₹5,000, then 3% GST (₹1,500) will be applied on the gold value. In addition, GST may also be charged separately on the making charges, increasing the total tax amount. This is why the final bill often turns out to be higher than expected. Always check whether making charges are added separately in the bill.
Important Things to Check Before Buying Gold Jewellery
- Check the hallmark: Always buy gold with a HUID number, which ensures purity and authenticity.
- PAN or Aadhaar is mandatory: For purchases above ₹2 lakh, identity proof is required.
- Negotiate wastage and extra charges: Many jewellers add additional costs that can often be negotiated.
- Understand the buyback policy: Exchanging old gold for new jewellery can help reduce the GST burden.
- Always take a proper bill: The bill should clearly mention taxes, making charges, and other costs.