GST on Gold: Current Rates on 22 & 24 Carat, Digital Gold, and Investment Schemes!

GST on Gold Jewellery: Understanding 18K, 22K, and 24K Rates in 2025 Gold always hold a deep emotional and financial significance in India . Whether it is for wedding, festival or investment purposes gold remains one of the trusted assets. As with the introduction of the Goods and Service Tax in 2017, the taxation structure on gold became more organized and transparent. Even today the buyers are confused about how GST applies to gold jewellery of different purities like 18k, 22k and 24k and how it affects the final price they pay. This article helps you to know about GST on gold jewellery and ornaments in 2025 including the rates, calculation and key insight for both buyers and jewelers.

GST or Goods and Service Tax is an indirect tax that replaced multiple older taxes such as VAT, excise duty and service tax. It brought uniformity across India by creating a single tax system for the supply of goods and services. In case of gold and jewellery GST has made pricing more consistent and reduced taxes that earlier increased the overall cost. Although the GST system has undergone several changes since its introduction the rate on gold has remained stable because of its sensitivity in Indian Market.

As of 2025 GST on gold jewellery is divided into two main components. The first is a 3% GST on the value of the gold itself . This applies to gold in all forms whether it is jewellery, coins, bars and ornaments. The second is a 5% GST on the making or craftsmanship charges which cover labour, design and manufacturing costs. Whether the jewellery is 18k, 22k, or 24K the GST rate on gold remains the same 3% on the metal and 5 % on making charges.

It is important to note that the GST structure is same for all whether it is ornaments, necklaces, bangles, earrings and rings as well whether it is for gold coins and bars. The 3% applies to metal value and the 5% GST applies to making component. Gold bars and coins usually have minimal or no making charges.

GST on Gold: Current Rates on 22 & 24 Carat, Digital Gold, and Investment Schemes! We find gold available in 22 as well as 24 Carat, and Digital gold too. Let’s see the rates of GST on Gold in India below.

24-carat Gold

GST rate on gold for 24 carats is levied at 3%, which continues to stay for all the categories of gold available in pure form. Doesn’t matter if it is gold bars, coins, or ornaments- GST rates remain uniform.

22-carat Gold

GST on 22-carat gold is also set at 3%. This includes GST on gold jewellery, bars, and coins falling under 22-carat.

Digital Gold

3% GST is applicable on purchasing digital gold.

Gold Investment Schemes

Gold investment policies such as Gold ETFs, Bonds, and mutual funds are exempted from GST on gold in India. However, 18% GST is levied on the service, management, and other fees applied to the policies.

What is the Impact of GST on Gold Jewellery?

• GST impacts the overall pricing of gold bars as well as jewelry and influences the buying decisions of the customers.
• GST ensures that the gold traders and jewellers are following the tax requirements and regulations.
• GST impacts the cost structure of the gold industry, influencing purchasing, pricing, investment, etc.
• GST standardizes the tax rates on gold and integrates transparency in the documentation process.

One common misconception among buyers is that 22K and 24K jewellery have different GST rates. In reality, GST does not depend on purity; it is calculated based on the price. The higher the carat, the higher the price — and hence a higher total tax in rupees, but the rate remains 3%. This standardization helps simplify trade and ensures that customers across states pay the same tax rate.

The government decided to keep the GST on gold unchanged in 2025, even after launching GST 2.0, which rationalized many tax slabs. The gold and jewellery sector is highly sensitive in India, directly linked to traditions and major life events like weddings. A sudden increase in GST could hurt demand and disrupt the market. Moreover, higher taxes could encourage gold smuggling or black-market trading. To maintain stability and transparency, the GST Council retained the existing 3% rate on gold and 5% on making charges. This move ensures predictability for jewellers and affordability for buyers, supporting steady growth in the industry.

For consumers, understanding GST is essential before making a purchase. Always check that your jeweller provides a proper invoice showing the breakup of gold value, making charges, and GST applied on each. Some jewellers may include GST in the quoted price, while others may add it separately, so it’s wise to confirm this before payment. When exchanging old jewellery for new, GST may not apply to the exchanged portion, but it will apply to the new portion you purchase. Also, when buying jewellery from a jeweller in another state, integrated GST (IGST) at 3% will apply instead of the usual 1.5% CGST + 1.5% SGST combination.