GST on Gold in India: Rate, HSN Codes and What Is Taxed
GST on gold is 3%, split as 1.5% CGST and 1.5% SGST on a same-state sale, or 3% IGST on an inter-state sale. The rate covers bars, coins, and jewellery, and it did not change when the 56th GST Council meeting in September 2025 reset most goods to two main slabs: gold stayed outside the restructuring. The table in the calculator lists the HSN (Harmonized System of Nomenclature) codes: 7113 for jewellery, 7108 for bars and biscuits, 7118 for coins, and service code 9988 for job work. Imitation jewellery (HSN 7117) is the exception and is taxed at 18%.
Digital gold platforms generally charge the same 3% on purchases. Customs duty on imported gold is a separate levy set in the Union Budget; it is already built into the market rate you see each morning, so it does not appear again on your bill.
How to Calculate GST on Gold (Formula and Worked Example)
The formula is GST = (Gold value + Making charges) × 3%, where Gold value = Weight × Rate per gram for your karat. A 22K gold rate follows from the 24K rate: 22K = 24K × 22 ÷ 24. Take 10 g of 22K jewellery at ₹12,730/g with 12% making charges:
- Gold value: 10 × 12,730 = ₹1,27,300
- Making charges: 12% × 1,27,300 = ₹15,276
- Taxable value: ₹1,42,576
- GST at 3%: ₹4,277.28 (₹2,138.64 CGST + ₹2,138.64 SGST)
- Total payable: ₹1,46,853.28
Searches for "today gold rate with GST" want exactly this figure: the market rate plus 3%, before making charges. For the reverse, divide a GST-inclusive total by 1.03; a ₹1,03,000 bill hides ₹3,000 of GST.
GST on Gold Making Charges: 3% on the Total, or 3% Plus 5%?
The GST Council's sectoral FAQ on gems and jewellery answers this directly. It gives an example of a chain with ₹28,000 of gold and ₹2,000 of making charges and states that GST is payable at 3% of the total transaction value, whether or not the making charge is shown separately. That makes ₹900 on ₹30,000, not ₹840 on the gold plus ₹100 on the making.
The 5% rate is real, but it belongs to job work: a registered job worker who works on gold supplied by a manufacturer pays 5% on the job charges only, and the same applies if you bring your own gold to a registered karigar and pay for labour. Many jewellery bills and many websites still show "3% on gold + 5% on making". Our calculator lets you test both. In the example above, split billing would charge ₹4,582.80 instead of ₹4,277.28, a difference of ₹305.52. If a retail bill adds 5% to making charges, ask the jeweller to explain the basis; tax treatment ultimately depends on how the supply is structured, so confirm uncertain cases with a GST professional.
22 Carat and 24 Carat Gold GST Rate: Does Karat Change the Tax?
No. The 22 carat gold GST rate and the 24 carat gold GST rate are both 3%. Karat only changes the gold content and therefore the price per gram: 24K is 99.9% pure, 22K is 91.6%, 18K is 75%, and 14K is 58.5%. A higher-karat piece carries more GST in rupees only because it costs more. The same logic holds across states: Kerala, Maharashtra, and Tamil Nadu all apply the 3% rate, and there is no state-specific GST rate for gold. Diamond-studded gold jewellery under HSN 7113 is taxed at 3% as well.
Old Gold Exchange, Hallmarking, and Cash Limits
- Old gold exchange: jewellers value your old gold at their buying rate and adjust it against the new bill. Because jewellers structure exchanges differently, check whether GST is applied to the full value of the new piece or only to the difference, and read the invoice before paying. The calculator subtracts old gold value after tax in the "Net after old gold" figure.
- Hallmarking: gold jewellery sold in India must carry a BIS hallmark with a 6-character HUID. Verify the HUID on the BIS Care app before you buy.
- Cash payments: Section 269ST of the Income-tax Act prohibits receiving ₹2 lakh or more in cash for a single transaction, so large gold purchases need bank, UPI, or card payment.
- Invoice checks: the bill should show the jeweller's GSTIN, HSN 7113, weight, rate, making charges, and the GST split.
How This Calculator Works and Where the Rules Come From
The calculator multiplies weight by the karat-adjusted rate, adds making charges (percentage, per gram, or flat), and applies 3% to the total, with a comparison against 3% on gold plus 5% on making. In job-work mode it applies 5% to labour only. All arithmetic is done in your browser to the paisa. Rate and classification references: the GST Council's sectoral FAQ on gems and jewellery (gstcouncil.gov.in), CBIC rate notifications (cbic-gst.gov.in), the 56th GST Council decisions, and BIS hallmarking rules (bis.gov.in). The 24K rate default is approximate; always use your jeweller's quoted rate.
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Frequently Asked Questions
What is the GST rate on gold in India?
3% (1.5% CGST + 1.5% SGST, or 3% IGST inter-state) on bars, coins, and jewellery, identical for 18K, 22K, and 24K.
How much GST on gold jewellery with making charges?
3% of the total transaction value, whether or not making charges are shown separately. A chain with ₹28,000 of gold and ₹2,000 of making attracts ₹900.
Is GST 5% on gold making charges?
5% applies to job work, such as labour on gold you supply or a manufacturer's job worker. On a finished jewellery sale, the total value is taxed at 3%.
What is the GST on 22 carat and 24 carat gold?
Both 3%. Purity changes the price per gram, not the rate.
What is the HSN code for gold ornaments?
7113 for jewellery, 7108 for bars and biscuits, 7118 for coins, and 9988 for job work.
Is GST charged on digital gold?
Platforms generally charge 3% GST on digital gold purchases.
How do I find the GST included in my gold bill?
Divide the total by 1.03 for the pre-GST value; the remainder is GST. A ₹1,03,000 bill includes ₹3,000 of GST.
Independent developer and economics researcher at Bhattadev University specializing in public finance, econometrics, cross-border invoicing, and global fiscal frameworks.
Educational tool, not tax or legal advice. Tax treatment depends on how a supply is structured and may change; verify against your invoice and consult a GST professional for business transactions. Gold rates change daily.