What is the GST Rate on Gold in India (2026)?
1.5% CGST + 1.5% SGST on raw metal, coins & ornaments
2.5% CGST + 2.5% SGST on customer metal craftsmanship
₹45 base fee + 18% GST (₹8.10) per article certified
5% BCD + 1% AIDC + 3% IGST for banks & agencies
Live Gold GST & Jewellery Invoice Calculator
22K (916) SelectedUpdated with CBIC Notification No. 20/2019-CT(R) & BIS Hallmarking Rules
1. Gold Purity & Metal Rate
2. Jewellery Weights & Stones
Net Pure Gold Weight = 12.500 grams (22K Gold).
3. Making / Wastage Charges
4. Hallmarking & Scrap Gold Exchange
5. Shop & Customer Details (For Printable Slip)
Itemized Cost Breakdown
100% Tax & BIS Hallmarked Compliant Valuation
Shree Ganesh Jewellers
Shop No. 14, Zaveri Bazaar, Mumbai, MH - 400002
Customer Name: Walk-in Customer
Contact No: N/A
Invoice / Estimate No: EST-2026-0842
Date: 2026-10-22
HSN Code: 7113 (Gold Jewellery)
| Description / Specifics | Purity / Karat | Weight (g) | Rate / g | Amount (₹) |
|---|---|---|---|---|
| Gold Metal Value | 22K (916) | 12.500g | ₹13074.80 | ₹163435.00 |
| Making / Craftsmanship Charges | 12% | - | - | ₹19612.20 |
| BIS Hallmarking (Statutory HUID Fee) | 6-Digit HUID | 1 Pcs | ₹45 + 18% | ₹53.10 |
Terms & Conditions:
1. Gold purity & weight verified as per BIS Hallmarking guidelines.
2. Making charges are non-refundable on returns/exchange.
3. This is a computer-generated jewellery tax quotation slip.
Authorized Signatory / For Shree Ganesh Jewellers
Today's Gold Rate in Major Indian Cities (23 October 2026)
Compare live retail prices for 24 Karat pure gold, 22 Karat jewellery hallmark gold, and Silver across top Indian bullion trading hubs.
| City / Region | State | 24K Gold (10g) | 22K Gold (10g) | 18K Gold (10g) | Silver (1 Kg) |
|---|---|---|---|---|---|
| Mumbai | Maharashtra | ₹1,42,634 | ₹1,30,748 | ₹1,06,976 | ₹1,99,693 |
| Delhi | Delhi NCR | ₹1,42,784 | ₹1,30,885 | ₹1,07,088 | ₹1,99,993 |
| Bengaluru | Karnataka | ₹1,42,554 | ₹1,30,675 | ₹1,06,916 | ₹1,99,543 |
| Chennai | Tamil Nadu | ₹1,42,814 | ₹1,30,913 | ₹1,07,111 | ₹2,00,093 |
| Hyderabad | Telangana | ₹1,42,734 | ₹1,30,840 | ₹1,07,051 | ₹1,99,893 |
| Kolkata | West Bengal | ₹1,42,754 | ₹1,30,858 | ₹1,07,066 | ₹1,99,943 |
| Ahmedabad | Gujarat | ₹1,42,584 | ₹1,30,702 | ₹1,06,938 | ₹1,99,593 |
| Jaipur | Rajasthan | ₹1,42,734 | ₹1,30,840 | ₹1,07,051 | ₹1,99,893 |
| Pune | Maharashtra | ₹1,42,684 | ₹1,30,794 | ₹1,07,013 | ₹1,99,793 |
| Lucknow | Uttar Pradesh | ₹1,42,794 | ₹1,30,895 | ₹1,07,096 | ₹2,00,043 |
1. Complete GST Rates on Gold & Jewellery in India (2026)
Under the Central Goods and Services Tax (CGST) Act 2017, gold transactions are categorized into raw metal, finished jewellery, job work manufacturing, and statutory hallmarking certifications. Below is the statutory tax structure verified under official CBIC circulars:
| Gold Category / Transaction Type | HSN / SAC Code | GST Rate | Statutory Tax Mechanism |
|---|---|---|---|
| Raw Gold, Bullion, Dore Bars, Coins | HSN 7108 | 3% | 1.5% CGST + 1.5% SGST (or 3% IGST) |
| Finished Gold Jewellery & Articles | HSN 7113 | 3% | Composite supply taxed at 3% on (Gold + Stones + Making) |
| Goldsmith Job Work (Customer's Gold) | SAC 9988 | 5% | 2.5% CGST + 2.5% SGST (Notif. No. 20/2019-CT(R)) |
| BIS Hallmarking & Assay Testing | SAC 9983 | 18% | ₹45 Fee + ₹8.10 GST = ₹53.10 / Piece |
| Selling Old Scrap Gold to Jeweller | HSN 7108/7113 | 0% (Exempt) | Exempt from RCM under Section 9(4); deducted from bill |
| Gold Imports by Banks & Agencies | Customs Ch. 71 | 6% BCD + 3% IGST | 5% BCD + 1% AIDC + 3% IGST upfront since April 2026 |
2. How Making Charges are Taxed: Flat 3% Composite Supply vs Split 5% Job Work
How jewellers format their tax invoice directly affects your total bill. In India, retail showrooms use one of two legally recognized invoicing practices:
| Billing Method | Tax Structure Applied | Example: ₹1,00,000 Gold + ₹10,000 Making | Total Tax & Net Bill |
|---|---|---|---|
| Method A: Composite Supply (Section 8)Used by major national retail chains | Flat 3% GST on entire bundled price (Gold Metal + Making Charges) | Taxable Value: ₹1,10,000 GST @ 3%: ₹3,300 | Total Tax: ₹3,300 Bill: ₹1,13,300 |
| Method B: Split Line-Item InvoicingUsed by traditional goldsmiths / ERP systems | 3% GST on Pure Gold Value + 5% GST on Making Charges (SAC 9988) | GST on Gold (3% of ₹1L): ₹3,000 GST on Making (5% of ₹10k): ₹500 | Total Tax: ₹3,500 Bill: ₹1,13,500 (+₹200 difference) |
When a jeweller sells completed jewellery under HSN 7113, the primary supply is "goods" (the gold jewellery). Under Section 8 of the CGST Act, ancillary services like making charges are bundled into the principal supply and taxed at the principal rate (3%). However, if making charges are billed as a standalone service under SAC 9988, Notification No. 20/2019-CT(R) levies 5% GST. Both methods are widely accepted by GST audit authorities.
3. GST Rules on Exchanging Old Scrap Gold: Why You Still Pay GST
A major point of confusion for consumers is why they are charged GST when exchanging old family jewellery for new ornaments. The legal provisions under the CGST Act are clear:
Under Section 15 of the CGST Act, GST is charged on the transaction value of the new jewellery being purchased. When you hand over old gold scrap, that gold is treated as consideration (equivalent to paying cash, debit card, or UPI). Handing over old gold does not erase the tax liability on the new gold crafted for you.
When an individual consumer sells old family jewellery to a registered jeweller, the transaction is an unregistered personal sale. CBIC circulars confirm that jewellers are exempt from paying Reverse Charge GST on old scrap gold bought from unregistered persons. The jeweller deducts the net scrap value from the final invoice.
4. Step-by-Step SOP: How to Verify Your Jewellery Tax Invoice & Avoid Overcharging
Follow this 5-step verification checklist before paying your gold jewellery bill at any retail showroom across India:
Verify Net Gold Weight
Ensure the jeweller deducts stone, bead, and enamel weights. Never pay gold price for non-gold stones. Net Gold Weight = Gross Weight minus Stone Weight.
Check Today's Karat Benchmark
Verify that the per-gram rate charged matches the actual karat purity. 22K (916) must be priced at 91.67% of 24K, and 18K (750) at exactly 75.0% of the 24K pure bullion rate.
Inspect Making Charges (Wastage)
Confirm whether making charges are billed as a percentage (typically 8% to 18%) or per gram (₹400 to ₹800/g). Beware of hidden wastage additions over and above making fees.
Confirm BIS 6-Digit HUID Code
Every hallmarked piece must carry the 6-digit alphanumeric HUID. Check the statutory hallmarking fee line item: ₹45 base + 18% GST (₹8.10) = ₹53.10 per piece.
Verify 3% GST Calculation
Check that GST is calculated as exactly 3% (1.5% CGST + 1.5% SGST) on the taxable value. If exchanging old gold, verify the scrap value is deducted after tax.
5. Pre-GST vs Post-GST Tax Comparison on Gold
Before the rollout of GST in July 2017, gold jewellery attracted a fragmented web of state-level VAT and central excise duties. Here is how the tax structure transitioned:
| Tax Component | Pre-GST Regime (Before July 2017) | Post-GST Regime (2026 Current) | Net Consumer & Business Impact |
|---|---|---|---|
| Excise Duty | 1% (with strict input conditions) | Subsumed into GST (0%) | Eliminated bureaucratic excise inspection hassles |
| State VAT | 1% to 1.2% (varied across states) | Subsumed into 1.5% SGST | Standardized uniform pricing across all Indian states |
| Service Tax on Making | 15% on labor / craftsmanship | 3% (Composite) or 5% (Job work) | Massive reduction from 15% to 3% / 5% on making charges |
| Input Tax Credit (ITC) | Minimal / Cascading tax leakage | Seamless 100% ITC | Jewellers can offset tax paid on bullion and job work |
6. Physical Gold vs Digital Gold vs SGB vs Gold ETF: Complete Tax Comparison
| Investment Vehicle | GST Rate at Purchase | Capital Gains Tax (2026 Rules) | Making & Storage Overhead |
|---|---|---|---|
| Physical Jewellery | 3% | 12.5% LTCG (holding > 24 months) | 8% – 25% Making Charges |
| Gold Coins / Bars | 3% | 12.5% LTCG (holding > 24 months) | 1% – 3% Minting Fee |
| Digital Gold (Apps) | 3% | 12.5% LTCG + 3% GST on delivery | 3%–5% buy-sell spread + custody fees |
| Sovereign Gold Bonds (SGB) | 0% (Nil) | 100% Tax-Free on RBI Maturity (Sec 47) | Zero overhead (Pays 2.5% p.a. interest) |
| Gold ETFs (NSE/BSE) | 0% (Nil on units) | 12.5% LTCG (holding > 12 months) | 0.30%–0.55% expense ratio + Demat charges |
7. Income Tax Limits on Buying Gold & Permissible Wealth Holding
When purchasing or holding physical gold in India, buyers and jewellers must strictly adhere to statutory thresholds under the Income Tax Act 1961:
- Section 269ST (₹2 Lakh Cash Cap): Jewellers cannot receive cash of ₹2,00,000 or more from a person in a day or in respect of a single invoice. Violating this attracts a penalty equal to 100% of the cash received.
- Rule 114B (Mandatory PAN Card): Furnishing a valid PAN card is mandatory for any purchase of jewellery or bullion exceeding ₹2,00,000 per transaction.
- Section 194DA / TDS: Cash transactions exceeding thresholds are reported to the tax department via SFT (Statement of Financial Transactions).
During income tax search and survey operations, tax authorities will not seize physical gold jewellery within the following statutory limits:
Holding gold beyond these limits is fully lawful provided you have legitimate purchase invoices, inheritance wills, or declared income sources.
8. Mandatory GST & Tax Compliances for Indian Jewellers
Jewellery retailers and wholesalers must comply with these statutory requirements to prevent audits and severe penalties from GST and Income Tax authorities:
Mandatory BIS 6-Digit HUID Hallmarking
All gold jewellery sold in India must carry the official Bureau of Indian Standards (BIS) hallmark, purity mark (e.g. 22K916), assay centre logo, and 6-digit alphanumeric HUID (Hallmark Unique Identification).
Income Tax Cash Restrictions (Section 269ST & Rule 114B)
Cash receipts of ₹2 Lakhs or more in a single day or against a single invoice are strictly prohibited under Section 269ST. Collecting the customer's PAN card is mandatory for any purchase exceeding ₹2 Lakhs.
E-Invoicing & E-Way Bill Regulations
B2B jewellers with aggregate turnover exceeding ₹5 Crores must generate electronic invoices (IRN) with signed QR codes. Intra-state transport of gold is exempt from standard national E-Way Bills under Rule 138(14), but state-specific e-transit passes apply.
GSTR-1 HSN Code Reporting (Table 12)
Jewellers must report Table 12 HSN summaries with 4-digit (turnover up to ₹5 Cr) or 6-digit (turnover > ₹5 Cr) codes: HSN 7108 for bullion/coins, HSN 7113 for finished jewellery, and SAC 9988 for job work.
9. Recommended Video Tutorials: Gold GST & Jewellery Billing
Watch these 4 handpicked, expert video guides explaining practical billing math, making charges, and retail gold GST compliance:
Recommended Video Tutorials & Practical Guides
Recommended Video Tutorials & Practical Guides
10. Verified Bullion Association & Tax Practitioner Insights
Practical compliance disclosures from bullion committee chairpersons, trade body executives, and forensic tax auditors:
“When a retail jeweller sells a finished gold necklace, making charges cannot be arbitrarily bifurcated to levy 18% service tax or 5% job work tax unless the customer provided raw gold. The transaction is fundamentally a composite supply of gold jewellery taxed uniformly at 3% across both metal and making charges.”
“Jewellers must never charge Reverse Charge GST on old scrap gold handed in by consumers. Selling personal family jewellery by an unregistered citizen does not constitute business. However, jewellers must obtain the customer's KYC and note the exact net melting weight on the purchase voucher.”
“The drop in customs duty from 15% to 6% (5% BCD + 1% AIDC) coupled with the mandate that banks pay 3% IGST upfront has crushed unofficial grey-market gold imports. Domestic MCX prices now track international London spot plus statutory customs with unprecedented precision.”
“Under Section 269ST, splitting a single jewellery purchase into four separate ₹50,000 cash slips across the same day is illegal. Section 269ST applies 'in aggregate from a person in a day'. Jewellers face 100% equal penalty for accepting cash exceeding ₹2 Lakhs.”
11. Frequently Asked Questions (FAQs) on GST in Gold
Verified answers to the most common tax questions regarding gold buying, selling, hallmarking, and exchange:
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