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  5. Gold prices jump: Today’s tax on 22kt and 18kt gold jewellery explained

Personal Finance News

Gold prices jump: Today’s tax on 22kt and 18kt gold jewellery explained

rajeev kumar
By Rajeev Kumar

3 min read | Updated on September 09, 2025, 17:04 IST

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SUMMARY

Gold jewellery tax calculation: Gold jewellery prices have seen a big jump in a day. The price of 22kt gold jewellery of 916 purity on September 8 was ₹98,298 per 10 gram, which increased to ₹99,975 on September 9.

gold tax calculation

Know how much tax you pay on buying 22kt or 18 kt gold jewellery today. | Image source; Shutterstock

The retail selling price of 10-gram 24kt, 22kt and 18kt gold jewellery has increased by ₹1884, ₹1667 and ₹1373, respectively, in a day, according to Indian Bullion and Jewellers Association (IBJA) data on September 9, 2025.

Data shows the price of 24kt gold jewellery of 995 purity on September 8 was ₹1,06,882 per 10 gram, which increased to ₹1,08,706 on September 9, reflecting an increase of ₹1884 per 10 gram in a day.

The price of 22kt gold jewellery of 916 purity on September 8 was ₹98,298 per 10 gram, which increased to ₹99,975 on September 9, reflecting an increase of ₹1667 per 10 gram in a day.

Meanwhile, the price of 18kt gold jewellery of 750 purity on September 8 was ₹80,484 per 10 gram, which increased to ₹81,857 on September 9, reflecting an increase of ₹1373 per 10 gram in a day.

What will be the tax if you purchase a 10-gram gold jewellery at today's rate?

Most gold jewellery is made from the yellow metal of 22kt and 18kt purity, respectively.

Currently, you have to pay 3% Goods and Services Tax (GST) on gold and an additional 5% tax on making charges while purchasing a piece of gold jewellery.

The making charges on gold jewellery are generally around 10% of the total value of the yellow metal in them.

Let's assume you plan to buy 10-gram gold jewellery of 22kt and 18kt at today's price. The tax will be calculated in both cases as follows:

Tax on 10-gram 22kt Gold jewellery:
ComponentAmount (₹)
Gold Price99,975
Making Charges (10%)9,997
Tax on Gold (3%)2,999.25
Tax on Making Charges (5%)499.85
Total Tax3,499.10
Tax on 10-gram 18kt Gold jewellery:
ComponentAmount (₹)
Gold Price81,857
Making Charges (10%)8,185
Tax on Gold (3%)2,455.71
Tax on Making Charges (5%)409.25
Total Tax2,864.96
Thus, the total tax on 10-gram each of 22kt gold and 18kt gold jewellery will be ₹3499.1+₹2864.96 = ₹6364.06.

Please note that the price of Gold used in jewellery keeps changing, even daily. Therefore, the tax charged on the purchase of any gold jewellery may also change every day.

Further, the actual making charges may vary from one jeweller to another and even from one jewellery to another.

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About The Author

rajeev kumar
Rajeev Kumar is a Deputy Editor at Upstox, and covers personal finance stories. In over 11 years as a journalist, he has written over 2,000 articles on topics like income tax, mutual funds, credit cards, insurance, investing, savings, and pension. He has previously worked with organisations like 1% Club, The Financial Express, Zee Business and Hindustan Times.