GST on Gold Jewellery – 2025 Rates, Impact and Buying Guide

September 29, 2025

Gold has always held a special place in Indian households, symbolising prosperity, purity, and financial security. Whether it is for weddings, festive occasions, or long-term investment, gold remains one of the most trusted assets. However, since the introduction of the Goods and Services Tax, the way buyers evaluate the cost of ornaments has changed. In 2025, understanding GST on gold jewellery is crucial because it directly determines the final price you will pay.

Currently, buyers need to account for 3 percent GST on the value of gold and an additional 5 percent GST on the making charges. This means that while raw gold attracts a simpler tax, crafted jewellery carries a slightly higher burden due to craftsmanship charges. Knowing the structure of GST on gold jewellery not only helps in smarter purchasing but also ensures that customers are not surprised by billing practices. Jewelove, as a premium and certified jewellery brand, provides complete transparency and authenticity, ensuring that every customer knows exactly what they are paying for.

What is GST on Gold Jewellery

The Goods and Services Tax, introduced in 2017, was designed to unify multiple taxes under a single system. For the jewellery industry, GST brought clarity and eliminated several indirect levies that earlier made gold prices inconsistent across regions.

When discussing GST on gold jewellery, it is important to distinguish between raw gold and crafted jewellery. Raw gold in the form of bars and coins attracts only 3 percent GST on its value. On the other hand, when gold is transformed into ornaments, the making charges for the craftsmanship are considered a service and hence attract 5 percent GST. This dual structure ensures uniform pricing and protects customers from hidden charges.

Essentially, GST on gold jewellery is a combination of two elements: the tax on the intrinsic value of gold and the tax on the service of creating a finished ornament. This is why buyers often notice a difference between purchasing gold coins and jewellery, even if the weight of gold is the same.

Current GST Rates on Gold Jewellery in 2025

As of 2025, the GST rates on different forms of gold remain consistent with previous years. Buyers should be aware of the following:

Raw gold in the form of bars and coins is taxed at 3 percent
Gold jewellery, whether 22 karat or 24 karat, attracts 3 percent GST on the gold value and 5 percent GST on making charges
Gold coins that include design work or craftsmanship are treated like jewellery and attract both 3 percent and 5 percent GST

The stability of these GST rates helps customers plan their purchases better and allows investors to forecast returns more accurately. The key takeaway is that GST on gold jewellery is always higher than GST on raw gold because of the additional service component.

GST Calculation Examples

To better understand how GST on gold jewellery affects the final bill, let us look at practical scenarios.

Example 1: Buying a 20 gram 22 karat gold chain with a base value of ₹60,000 and making charges of ₹6,000
Gold value: ₹60,000 → GST at 3 percent = ₹1,800
Making charges: ₹6,000 → GST at 5 percent = ₹300
Total cost: ₹60,000 + ₹6,000 + ₹1,800 + ₹300 = ₹68,100

Example 2: Buying a 20 gram gold coin with a base value of ₹60,000 and no making charges
Gold value: ₹60,000 → GST at 3 percent = ₹1,800
Total cost: ₹60,000 + ₹1,800 = ₹61,800

These examples highlight how GST on gold jewellery increases the cost compared to coins. The additional tax on making charges reflects the craftsmanship and service involved in producing ornaments. Buyers should always request a clear breakdown in invoices to understand how GST contributes to the final amount.

Impact of GST on Gold Jewellery Buyers

The introduction of GST on gold jewellery has changed the buying experience in both positive and negative ways.

Positive impacts

Buyers now enjoy transparent and uniform billing across the country
It is easier to compare prices between jewellers since GST rates are fixed
The possibility of hidden charges has been reduced, improving consumer trust

Challenges

The final cost of gold jewellery is higher compared to raw gold or coins due to GST on making charges
Buyers of heavily designed or luxury ornaments experience a bigger tax impact as making charges are significan
During wedding and festive seasons, customers must account for GST in their budgets, making ornaments slightly costlier

While GST adds to the final cost, it has ultimately built greater clarity in the industry. Customers now know exactly what they are paying for, making jewellery purchases more reliable.

GST on Gold Investment Options

Apart from ornaments, gold is also purchased in various investment forms, and each attracts a different GST treatment.

Digital gold attracts 3 percent GST on purchase, similar to physical gold
Gold Exchange Traded Funds, Sovereign Gold Bonds, and gold mutual funds do not attract GST on the gold value, but associated service charges such as brokerage and management fees are taxed at 18 percent GST
Imports of gold attract 5 percent customs duty along with 3 percent Integrated GST
Exports of gold jewellery are exempt from GST, making India competitive in global jewellery trade

For investors, the choice of gold product depends on the purpose. Physical jewellery carries GST on gold value and making charges, while financial instruments offer exposure to gold with different tax implications.

Expert Buying Tips in 2025

To make the most of your jewellery purchase while accounting for GST, consider these practical tips:

Request a detailed invoice that lists gold value, making charges, and GST separately
Choose only BIS-hallmarked and certified jewellery for assured purity
Compare the cost of coins and ornaments depending on whether your priority is investment or adornment
Time your purchases during festivals and brand promotions, as discounts and offers can help offset the effect of GST on gold jewellery
Avoid unbilled or cash-only transactions, as proper invoices protect your investment and prove authenticity

By following these practices, you ensure that your purchase remains both emotionally fulfilling and financially secure.

Why Buy from Jewelove

Jewelove has built its reputation as a trusted and premium jewellery brand by focusing on authenticity and customer-first service. Every product is sold with complete transparency, where GST on gold jewellery is clearly mentioned in the bill. Buyers also receive hallmark certification and PGI certification for platinum jewellery.

In addition, Jewelove offers free customisation and design services, making every ornament as unique as its wearer. With thousands of satisfied customers and glowing reviews, Jewelove is committed to delivering jewellery that not only reflects beauty but also ensures lasting value.

Conclusion

Understanding GST on gold jewellery in 2025 helps buyers make confident and informed decisions. While it does add to the overall cost, it ensures uniformity, transparency, and credibility in the jewellery industry.

At Jewelove, every piece is authentic, certified, and priced with complete honesty. By knowing how GST on gold jewellery works, you can plan your purchase wisely and invest in ornaments that truly last a lifetime.

Explore the premium platinum and gold jewellery collection at Jewelove and enjoy a seamless buying experience where trust, quality, and service come first.

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Frequently Asked Questions

Q1. What is the GST rate on gold jewellery in India?

Ans: The GST on gold jewellery is 3 percent on the value of gold and 5 percent on making charges.

Q2. Can I buy gold without paying GST?

Ans: No, GST on gold jewellery is mandatory in India, and every registered jeweller is required to collect it.

Q3. Do making charges always attract GST?

Ans: Yes, making charges are classified as a service and attract 5 percent GST under Indian tax rules.

Q4. Is GST refundable for buyers?

Ans: Only businesses registered under GST can claim Input Tax Credit. Individual consumers cannot claim refunds on GST paid on gold jewellery.

Q5. Does GST apply to both 22 karat and 24 karat jewellery

Ans: Yes, GST on gold jewellery applies equally to both 22 karat and 24 karat ornaments.

Q6. What happens when I exchange old gold for new jewellery?

Ans: GST is not levied on the value of old gold given in exchange, but it applies on the new jewellery purchased.

Q7. Is GST applicable on diamond studded or gemstone jewellery?

Ans: Yes, GST applies separately on gold, diamonds, gemstones, and making charges, making the final bill slightly higher.

Q8. How can I ensure that GST is charged correctly?

Ans: Always ask for a proper invoice that shows a separate breakup of gold value, making charges, and GST.

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