GST on Gold 2025-26 — Jewellery, Coins, Bars & Making Charges
Updated: 3 June 2026 | FY 2025-26 | GST Council Rates | HSN 7108 / 7113
Gold jewellery in India attracts 3% GST on the gold value plus 5% GST on making charges. Plain gold coins and bars attract 3% GST. Gold imported into India also bears customs duty (15%) + AIDC in addition to 3% GST. Sovereign Gold Bonds (SGBs) bought from RBI are exempt from GST. Hallmarking/certification services attract 18% GST. Registered jewellers can claim Input Tax Credit (ITC) on gold purchases used in their business.
3% + 5%
GST on gold jewellery: 3% on gold value + 5% on making charges.
Gold coins/bars: 3%. Import: 3% GST + 15% customs duty + AIDC. SGBs: Nil GST. Hallmarking: 18%.
Gold coins/bars: 3%. Import: 3% GST + 15% customs duty + AIDC. SGBs: Nil GST. Hallmarking: 18%.
GST Rates on Gold — All Products at a Glance
| Gold Product | GST Rate | HSN Code | Notes |
|---|---|---|---|
| Gold jewellery (gold value component) | 3% | 7113 | Rings, necklaces, bangles, earrings, chains, etc. |
| Making charges / labour charges on jewellery | 5% | 9988 | Charged separately on GST invoice; 5% on fabrication cost |
| Gold coins (24K, 22K purity) | 3% | 7108 | Sold by banks, jewellers, mints |
| Gold bars / bullion | 3% | 7108 | 10g, 50g, 100g, 1kg bars |
| Gold dore (unrefined gold) | 3% | 7108 | Used by refiners |
| Gold scrap | 3% | 7112 | Reverse charge if sold by unregistered person to registered dealer |
| Sovereign Gold Bonds (SGBs) | Nil | — | RBI-issued bonds; no GST on purchase. Secondary market brokerage: 18% GST |
| Gold ETF units | Nil | — | Securities; not goods — GST not applicable |
| Hallmarking / BIS certification | 18% | 9983 | Testing and certification services by BIS-approved assaying centres |
| Gold import (via customs) | 3% IGST + 15% customs duty + AIDC | 7108 | AIDC varies; total import cost can be ~18–20%+ |
Gold Jewellery Purchase — Sample GST Invoice Breakup
| Component | Amount (Example) | GST Rate | GST Amount |
|---|---|---|---|
| Gold value (22K, 10g @ ₹7,200/g) | ₹72,000 | 3% | ₹2,160 |
| Making charges | ₹8,000 | 5% | ₹400 |
| Total payable | ₹80,000 | — | ₹2,560 |
| Grand total (gold + making + GST) | ₹82,560 | — | — |
Gold Import Duties (2025-26)
| Charge | Rate | Notes |
|---|---|---|
| Basic Customs Duty (BCD) | 6% | Reduced from 15% in Budget 2024 to curb smuggling |
| Agriculture Infrastructure Development Cess (AIDC) | 5% | On CIF value of import |
| IGST (GST on imports) | 3% | On assessable value + BCD + AIDC |
| Social Welfare Surcharge | 10% of BCD | On BCD amount |
| Effective total import cost | ~15–16% | Approximate — exact depends on CIF value and exchange rate |
Input Tax Credit (ITC) for Jewellers
Registered jewellers (GST-registered businesses) can claim ITC on gold purchased from registered suppliers for manufacturing jewellery for sale. The 3% GST paid on gold bullion/coins/scrap purchased for business can be offset against the 3% GST collected on jewellery sold. ITC on making charges (if outsourced to another workshop) at 5% can also be claimed. This avoids cascading tax and reduces the effective cost. However, ITC is NOT available on gold or jewellery purchased for personal use, gifts, or samples. Proper documentation (GST invoices, e-way bills for bulk) is essential.
Frequently Asked Questions
What is the GST rate on gold jewellery and making charges?
Gold jewellery attracts two separate GST components: (1) 3% GST on the value of gold used in the jewellery, and (2) 5% GST on making charges (the labour/craftsmanship charges). The 3% applies to the gold content value, while 5% applies to the fabrication cost charged by the jeweller. Example: if gold value is ₹1,00,000 and making charges are ₹10,000, total GST = ₹3,000 (on gold) + ₹500 (on making) = ₹3,500. The jeweller must issue a proper GST invoice showing the breakup of gold value, making charges, and GST on each component separately.
Does the jeweller have to give a GST invoice?
Yes. Every registered jeweller (turnover above ₹40 lakh for goods) must issue a proper GST tax invoice. The invoice must show: jeweller GSTIN, HSN code (7113 for jewellery of precious metals), gold weight, gold purity, gold value, making charges, GST on gold @ 3%, GST on making charges @ 5%, and total amount. As a buyer, always demand a proper GST invoice — it serves as proof of purchase and is essential for claiming insurance, resale valuation, and capital gains cost proof. If the jeweller refuses a GST invoice, they may be violating GST law.
Is there GST on Sovereign Gold Bonds (SGBs)?
No. Sovereign Gold Bonds (SGBs) issued by the Reserve Bank of India on behalf of the Government of India do NOT attract GST at the time of purchase. SGBs are treated as government securities and are exempt from GST. However, if SGBs are traded on the stock exchange (secondary market), brokerage charges on the transaction may attract 18% GST. Capital gains from SGBs: interest received annually is taxable as income from other sources. Redemption at maturity (8 years) is tax-exempt for individuals. If sold on exchange before maturity, LTCG rules apply (if held > 12 months).
What is the GST on gold scrap — does reverse charge apply?
GST on gold scrap is 3%. However, when an unregistered person (like an individual seller) sells gold scrap to a registered dealer/jeweller, the Reverse Charge Mechanism (RCM) applies under the Metal Scrap notification. The registered buyer (jeweller/refiner) must pay the GST on such purchases under RCM, rather than the unregistered seller collecting it. This prevents tax evasion in the scrap gold market. If both buyer and seller are registered under GST, normal forward charge (seller collects and pays GST) applies. Always get a proper document (debit note or purchase invoice) when selling gold scrap to a dealer.
Can jewellers claim Input Tax Credit (ITC) on gold purchased for business?
Yes. Registered jewellers can claim Input Tax Credit on gold purchased for manufacturing jewellery for sale. ITC on gold (3% GST paid to the bullion trader or refiner) can be offset against GST collected on jewellery sold to customers. This is a key benefit of GST for the jewellery trade — it eliminates cascading tax. However, ITC on goods or services used for personal consumption cannot be claimed. Jewellers must maintain proper purchase invoices, stock records, and GST-compliant books. ITC on capital goods (machinery, display cases) and services (shop rent, electricity) is also available for business use.
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