Gold Jewellery and GST in India (2025): What You Need to Know

Introduction

Gold Jewellery and GST in India: Ever wondered how much extra you pay for that sparkling gold necklace or a shiny pair of earrings in India? It’s not just the price of gold that matters, but also something called GST – Goods and Services Tax. In this guide, we’ll break down everything you need to know about GST on gold jewellery in India, in simple terms. We’ll cover how it’s calculated, how it affects prices, and what to keep in mind when you’re shopping for gold. Let’s make sure you’re a smart gold buyer!

“Why Does My Gold Bill Have So Many Charges?”

Last week, a young couple at our Delhi showroom gasped when their ₹1.5 lakh gold bill included ₹4,845 GST. “But gold is just gold, right?” they asked. If you’ve ever felt confused about GST on jewellery, this guide will show you:

✅ Exactly how GST is calculated (with 2025 rates)
✅ 3 tricks jewellers use to hide charges (and how to avoid them)
✅ When you can legally reduce GST (festival hacks!)

(Bonus: Use our free Gold Price Calculator with GST for instant estimates.)

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GST on Gold Jewellery: 2025 Update

1. The Two-Part Tax System

When you buy a gold chain, you pay GST on:

Component	GST Rate	Example (22K Chain)
Gold Value	3%	₹50,000 → ₹1,500 GST
Making Charges	5%	₹5,000 → ₹250 GST

Pro Tip: Making charges vary wildly:

• Chennai: 8-12% (simple designs)
• Jaipur: 15-25% (kundan/meenakari)
  (Verify rates with this Making Charges Calculator)

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2. Real-Life GST Calculation

Scenario: Buying 20g 22K gold bangles in Mumbai (June 2025 rates)

1. Gold Value:
   • Today’s rate: ₹6,300/g
   • 20g × ₹6,300 = ₹1,26,000
   • GST (3%): ₹3,780
2. Making Charges:
   • 10% of gold value = ₹12,600
   • GST (5%): ₹630
3. Total GST: ₹4,410 (That’s 2.8% of total cost)

Final Price: ₹1,26,000 + ₹12,600 + ₹4,410 = ₹1,43,010

Try your own numbers with our Gold Karat Calculator.

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3 Insider Secrets (Most Jewellers Won’t Tell You)

1. The “Exchange” Loophole

• No GST on the old gold’s value during exchange.
• Example: Swap 15g old bangles for 18g new ones? Pay GST only on:
  • 3g gold value (₹18,900 × 3% = ₹567)
  • Making charges (say ₹2,000 × 5% = ₹100)

2. Festival Discounts

Many stores absorb GST on making charges during:

• Diwali (Oct-Nov)
• Akshaya Tritiya (Apr-May)
  “We waive 50% making GST for bulk purchases in the wedding season,” says Rakesh Shah, Mumbai Jewellers Association.

3. Hallmarking = Your GST Shield

Since 2023, all gold must be BIS-hallmarked. Non-hallmarked pieces:

• Risk 100% penalty + confiscation
• Often has hidden GST fraud (see case study below)

Check purity with our Gold Karat Converter.

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GST Fraud Alert: 3 Red Flags

🚩 “No GST Invoice” Offers
→ Illegal. Always demand a receipt with GSTIN.

🚩 Under-Weighting
→ Some deduct 0.1g per gram (saving ₹200 GST per 10g).

🚩 Flat Making Charges
→ “₹3,000 labour fee” may hide a 10% actual rate.

Fun fact: Test your gold knowledge with these 25 Gold Quiz Questions.

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Key Takeaways

✔ Total GST = 3% on gold + 5% on making
✔ Negotiate making charges (not GST!)
✔ Always get a GSTIN invoice – it’s your legal proof

Final Thought:
“My grandfather sold gold without bills. Today, I insist on transparent GST breakdowns – it protects both buyer and seller.”
– Aditya Mehta, Gemological Institute of India

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Need Help?
🔹 Calculate GST: Gold Price Calculator
🔹 Check Purity: Karat Calculator

Official GST Portal, Government of India (for general GST information and current rates):

• GST Goods and Services Rates – CBIC (This page provides official GST rates for various goods and services, including gold.)

Central Board of Indirect Taxes and Customs (CBIC) – FAQs or Notifications (for specific clarifications on GST on gold/jewellery):

• Gems & Jewellery – GST Council FAQs (This PDF from the GST Council directly addresses common questions related to GST on gems and jewellery, making it a highly authoritative source).

Drop questions below! I reply to every comment.

Gold Jewellery GST: Your Questions Answered