GST on Gold: Rates Explained for Jewellery, Coins & Bullion (2026)

The rate on gold itself

Gold — as bullion, coins or the metal content in jewellery — continues to attract a concessional 3% GST rate, a special treatment carved out for precious metals that was retained through the broader GST rate rationalisation.

Making charges are taxed separately

When a jeweller bills making charges separately from the gold value, those charges attract GST at 5%, distinct from the 3% on the metal itself. If making charges aren't itemised and are bundled into the total price, the full 3% composite rate typically applies instead — so an itemised bill isn't just for transparency, it affects the tax you pay.

Old gold exchange

Exchanging old jewellery for new generally doesn't attract GST on the old gold itself when it's a personal, non-business transaction — GST applies only on the new jewellery and its making charges, not on the metal you traded in.

For jewellers and gold businesses

If you run a jewellery business, correct HSN classification and rate application across gold, studded jewellery and making charges is worth a periodic GST advisory & health check, since even small misclassifications compound across high transaction volumes.

FAQs

Is there GST on gold purchased for investment (coins/bars) too? Yes — the 3% rate applies to bullion and coins as well, not just fabricated jewellery.

Can I claim input tax credit on gold purchased for my jewellery business? Yes, registered jewellery businesses can generally claim ITC on gold purchased for resale, subject to standard ITC conditions.