GST on Gold and Jewellery 2026 — 3% Rate, Making Charges, HSN Code
Gold and jewellery have a unique GST structure — 3% on the gold value and 5% on making charges. Here is the complete guide for 2026.
GST Rates on Gold and Jewellery
| Item | GST Rate | HSN Code |
|---|---|---|
| Gold bars and coins | 3% | 7108 |
| Gold jewellery | 3% | 7113 |
| Making charges on jewellery | 5% | 9988 |
| Silver jewellery | 3% | 7113 |
| Diamond jewellery | 3% | 7113 |
| Platinum jewellery | 3% | 7113 |
| Imitation jewellery | 3% | 7117 |
How to Calculate GST on Gold Jewellery
Example:
- Gold weight: 10 grams
- Gold rate: ₹7,500 per gram
- Gold value: ₹75,000
- Making charges: ₹5,000
GST calculation:
- GST on gold (3%): ₹75,000 × 3% = ₹2,250
- GST on making charges (5%): ₹5,000 × 5% = ₹250
- Total GST: ₹2,500
- Total cost: ₹75,000 + ₹5,000 + ₹2,500 = ₹82,500
Why 3% GST on Gold?
Gold has a special 3% GST rate (outside the standard 5%/18% structure) because:
- Gold is a significant store of value and investment asset
- Higher GST would push buyers to informal/unorganised markets
- 3% balances revenue collection with market formalisation
This rate was maintained in GST 2.0 (September 2025) — gold was not included in the rate rationalisation.
ITC on Gold Purchases
Jewellers and gold traders can claim ITC on gold purchases used for making jewellery for sale. The ITC chain works as:
- Jeweller buys gold (pays 3% GST) → claims ITC
- Jeweller sells jewellery (charges 3% GST + 5% on making charges) → pays net GST
Consumers cannot claim ITC on gold purchases — ITC is only for businesses.
Import Duty on Gold
Gold imported into India attracts:
- Basic Customs Duty: 6%
- Agriculture Infrastructure Development Cess (AIDC): 5%
- IGST: 3%
- Total effective duty: approximately 14-15%
This is why imported gold is significantly more expensive than domestic gold.
GST on Gold Loans
Gold loans (pledging gold as collateral) are financial services and attract 18% GST on the interest/processing charges — not on the gold itself.
Frequently Asked Questions
Is GST applicable on old gold jewellery sold to a jeweller?
If you sell old gold jewellery to a registered jeweller, GST applies at 3% on the transaction value. The jeweller pays GST on the purchase.
What is the GST on digital gold?
Digital gold (purchased through apps like PhonePe, Paytm) attracts 3% GST, same as physical gold.
Is there GST on gold ETFs and sovereign gold bonds?
No. Gold ETFs and Sovereign Gold Bonds (SGBs) are financial instruments and are not subject to GST.
Need help with GST registration or filing for your jewellery business? I handle GST compliance starting ₹999/month. Message me on WhatsApp.
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