Understanding GST Impact on Gold Rates in India

3 min read | Updated on October 16, 2025, 16:39 IST

About Upstox

Upstox is a leading Indian financial services company that offers online trading and investment services in stocks, commodities, currencies, mutual funds, and more. Founded in 2009 and headquartered in Mumbai, Upstox is backed by prominent investors including Ratan Tata, Tiger Global, and Kalaari Capital. It operates under RKSV Securities and is registered with SEBI, NSE, BSE, and other regulatory bodies, ensuring secure and compliant trading experiences.

India is one of the largest consumers of gold. We buy gold on special occasions, festivals and weddings. However, most Indians are now finding Gold to be quite out of their budget, along with the making charges and GST charges on gold purchases, which increase the total expense.

Let's understand the GST charges on Gold Rates in detail.

GST on Gold In India

In India, GST (consisting of CGST & GGST) on gold is 3%, with 5% GST on making charge.

Use a GST Calculator to find out GST payable on your gold purchase.

GST on Ready-made Gold in India

When you buy ready-made gold jewellery, you are liable to pay 3% GST on your purchase. No GST is payable on making charges for readymade gold jewellery. This is because gold and the craftsmanship are considered a composite supply, hence GST isn’t charged separately.

Open FREE Demat Account within minutes!

Join now

For example, you buy a gold coin worth ₹1,00,000. You will have to pay 3% GST on your purchase, which will be ₹3,000, making your total expense ₹1,03,000.

GST on Second-Hand Gold

GST on second-hand gold is payable only by registered dealers selling second-hand gold, where 3% GST is applicable on the sale price.

Reverse Charge Mechanism

If a jeweller isn’t registered under GST, then the tax liability shifts from the customer to the jeweller, i.e the seller. The goldsmith or specialist will be charged 3% GST on the sale price. This is called the ‘Reverse Charge Mechanism’.

For example, you buy gold from an unregistered goldsmith at ₹1,00,000. He will be liable to pay 3% GST on the sale price, i.e ₹3,000.

Jewellery Repairs

For any jewellery repairs, you will be charged 5% GST on repair expenses. This is different from the 5% GST applicable on making charges of custom-made jewellery.

GST on Custom-made Gold Jewellery

When you have your gold jewellery custom-made, 3% GST will be applicable on the value of gold, along with 5% GST on making charges.

For example, you have a 30 gram necklace custom-made by your jeweller. The gold value comes down to ₹3,88,860 (As per the current ₹1,29,620 per 10 gms of gold).

Particulars	Amount (₹)
Gold	3,88,860
Add: 3% GST on Gold	11,665
Making Charges	38,886
Add: 5% GST on making charges	1,944
Total Cost	4,41,355

Buying Gold Outside of India

If you buy Gold outside of India and bring it back, you will be charged customs duty as per the gold's weight and its value in India. As a woman, you can carry 40 gms of gold duty-free, and a man can bring 20 gms of gold duty-free. If you exceed these limits, customs duty will be charged.

Knowing the GST rate and its application when buying gold will help you budget effectively for your next gold purchase.

About Author

Mariyam Sara

Sub-Editor

holds an MBA in Finance and is a true Finance Fanatic. She writes extensively on all things finance whether it’s stock trading, personal finance, or insurance, chances are she’s covered it. When she’s not writing, she’s busy pursuing NISM certifications, experimenting with new baking recipes.