How much GST is applicable on gold purchases in India?

Gold purchases in India attract a 3% GST on the value of raw gold metal, plus a 5% GST on the making charges (craftsmanship cost) applied by the jeweller.

How is 3% GST divided between Central and State governments?

For intrastate jewellery purchases, the 3% GST is split equally into 1.5% CGST (Central GST) and 1.5% SGST (State GST).

Is GST charged when exchanging old gold for new jewellery?

No GST is charged on the exchange value of old gold if sold to a registered jeweller. However, GST is applicable on the net difference amount and making charges for the new piece.

What is the formula to calculate final gold jewellery price with GST?

Final Price = (Gold Weight in Grams × Rate per Gram) + Making Charges + 3% GST on (Gold Value + Making Charges).

🪙 Gold GST Calculator (India 2026)

Calculate exact 3% GST on Gold Jewellery, Coins, and Bullion. Split 1.5% CGST + 1.5% SGST with making charge estimation and 1-click WhatsApp sharing.

Slabs: 🪙 Gold (3% Special) 5% Slab 12% Slab 18% (Standard) 28% Luxury

Calculation Mode

Gold Jewellery / Bullion Value Type or drag slider

₹

1,000 5,00,000 10,00,000

Typical Purchase Values

Gold Special Tax Rate

Transaction Jurisdiction

Total Jewellery Cost (Gross)

₹51,500.00

3% Gold GST Applied

Raw Gold Value (Net): ₹50,000.00

Total 3% GST Amount: ₹1,500.00

CGST (Central Tax 1.5%): ₹750.00

SGST (State Tax 1.5%): ₹750.00

IGST (Integrated Tax 3%): ₹1,500.00

Final Gross Amount: ₹51,500.00

Gold Jewellery GST Calculation Formula

In India, gold jewellery billing has a specific two-part tax structure:

1. Raw Gold Tax (3% GST)

Gold Tax = (Gold Weight in Grams × Rate/g) × 0.03

Split: 1.5% CGST (Central Government) + 1.5% SGST (State Government).

2. Making Charges Tax (5% GST)

Making Charge Tax = Making Charges × 0.05

Total Bill: Raw Gold Price + Making Charges + 3% GST on Gold + 5% GST on Making Charges.

Gold Purity Standards (24K vs 22K vs 18K)

Under BIS (Bureau of Indian Standards) mandatory hallmarking rules in India, every piece of gold jewellery carries a purity mark:

Purity Grade	Fineness (Hallmark)	Gold Percentage	GST Rate	Primary Use
24 Karat (24K)	999	99.9% Pure Gold	3%	Investment gold bars, minted coins, bullion.
22 Karat (22K)	916	91.6% Pure Gold	3%	Traditional Indian bridal jewellery, bangles, necklaces.
18 Karat (18K)	750	75.0% Pure Gold	3%	Diamond rings, stud earrings, stone-studded modern jewellery.
14 Karat (14K)	585	58.5% Pure Gold	3%	Daily-wear lightweight fashion jewellery.

Standard GST Calculator Make Jewellery Invoice (PDF)

Frequently Asked Questions on Gold GST

The GST Council instituted a special 3% rate for precious metals (Gold, Silver, Platinum) to discourage unrecorded cash transactions and illegal smuggling while keeping tax compliance high among Indian households.

Only registered jewellery manufacturers and traders can claim ITC on gold purchased for commercial resale or further manufacturing. Individual retail consumers buying jewellery for personal use cannot claim ITC.

Yes, 3% GST is charged when buying Digital Gold (since physical gold is stored in vaults on your behalf). Gold ETFs (Exchange Traded Funds) and Sovereign Gold Bonds (SGBs) do not attract 3% GST on purchase as they are traded as financial securities.