GST on Gold in India —
3% + 5% Making Charges
The correct GST on gold jewellery, coins, bars, scrap and imports — how the 3% gold rate and 5% making-charge rate combine on your invoice, plus SGBs, hallmarking and ITC for jewellers.
Gold jewellery attracts 3% GST on the gold value plus 5% GST on the making charges — the two are billed separately on the same invoice. Plain gold coins and bars are taxed at 3%. Sovereign Gold Bonds (SGBs) bought from the RBI are exempt, while hallmarking/BIS certification is 18%. These rates were not changed by GST 2.0 (effective 22 September 2025).
GST Rates on Gold — Decision Table
The GST rate for every common gold product and service, with the HSN/SAC code. Use our GST calculator to work out the tax on any invoice.
| Gold Product / Service | GST Rate | HSN / SAC | Notes |
|---|---|---|---|
| Gold jewellery (gold value component) | 3% | 7113 | Rings, chains, bangles, earrings — all purities |
| Making / labour charges on jewellery | 5% | 9988 | Job-work / fabrication, billed separately |
| Gold coins (22K / 24K) | 3% | 7118 / 7108 | Sold by banks, jewellers, mints |
| Gold bars / bullion | 3% | 7108 | 10g, 50g, 100g, 1kg bars |
| Gold dore (unrefined) | 3% | 7108 | Used by refiners |
| Gold scrap | 3% | 7112 | RCM if unregistered seller → registered dealer |
| Sovereign Gold Bonds (SGBs) | Nil | — | RBI-issued; no GST on purchase |
| Gold ETF / digital gold units | Nil | — | Securities — outside GST |
| Hallmarking / BIS certification | 18% | 9983 | Assaying & certification service |
| Imported gold (IGST at customs) | 3% | 7108 | Plus customs duty & AIDC — see below |
Precious-metal rates were retained under the GST 2.0 two-slab reform effective 22 September 2025. Confirm on the official GST portal before invoicing.
Why Two Rates Apply to One Purchase
A jewellery bill is a composite supply of goods (gold) + service (making). The gold content is taxed as goods at 3%; the craftsmanship/fabrication is taxed as job-work at 5%. A compliant jeweller must show the split on the tax invoice.
On the gold value
- Applies to the metal content — 18K, 22K or 24K
- Same 3% whatever the purity
- HSN 7113 (jewellery) / 7108 (bars & coins)
- Charged on weight × rate per gram
On the making charges
- Applies to labour / fabrication cost
- SAC 9988 — job-work on precious metal
- Billed separately from the gold value
- Whether fixed per-gram or a percentage
The invoice must show the jeweller's GSTIN, HSN code, gold weight & purity, gold value, making charges and 3% + 5% GST shown separately. It is your proof for insurance, resale valuation and capital-gains cost — a jeweller refusing a GST invoice may be violating GST law.
Buying or selling gold and unsure how to bill it?
Talk to a GST Expert →How GST Adds Up on a Gold Purchase
A simple 22K jewellery purchase showing the 3% on gold value and 5% on making charges combining into the final bill.
3% On the gold value
5% On the making charges
Grand total = ₹82,560 (₹80,000 gold + making, plus ₹2,560 GST). The two GST lines — ₹2,160 and ₹400 — are shown separately on the invoice, never merged into a single rate.
Want the numbers checked for your own invoice?
Open GST Calculator →GST & Customs on Imported Gold
Imported gold bears 3% IGST at customs on top of Basic Customs Duty and cess. IGST is charged on the assessable value plus duties, so the effective landed cost is higher than 3% alone.
| Charge | Rate | Basis |
|---|---|---|
| Basic Customs Duty (BCD) | 6% | On CIF / assessable value |
| Agri Infrastructure Development Cess (AIDC) | 5% | On assessable value |
| IGST (GST on import) | 3% | On assessable value + BCD + AIDC |
| Social Welfare Surcharge | 10% of BCD | On the BCD amount |
Import duty rates are set by the Union Budget / customs notifications and change periodically — confirm the current BCD/AIDC on cbic-gst.gov.in before import. IGST on gold is 3%.
Only the 3% IGST is a GST charge that a registered importer can take as Input Tax Credit. Customs duty and cess are not GST and cannot be claimed as ITC — they become part of the cost of the gold.
ITC for Jewellers & Reverse Charge on Scrap
A GST-registered jeweller can claim Input Tax Credit on the 3% GST paid on gold bought for making jewellery, and on 5% job-work — offsetting it against GST collected on sales. ITC is not available on gold bought for personal use, gifts or samples.
ITC is available when
- Gold is purchased from a registered supplier for resale/manufacture
- You hold a valid tax invoice and it appears in GSTR-2B
- It is used for the taxable business of selling jewellery
- Job-work (5%) is outsourced for business stock
ITC is blocked when
- Gold is bought for personal use, gifts or samples
- No proper GST invoice was issued
- Purchased from an unregistered dealer without RCM compliance
- Customs duty / AIDC on imports — not GST, so not creditable
On gold scrap (HSN 7112), when an unregistered person sells to a registered dealer, the buyer pays the 3% GST under the Reverse Charge Mechanism (RCM) and self-invoices — always keep a purchase document when selling old gold to a jeweller.
Frequently Asked Questions
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