GST On Gold 2025: Gold is more than simply a commodity in India’s rich cultural and economic structure; it’s also a sentimental investment, a custom, and a safeguard against unpredictability. As of September 4, 2025, gold prices in major cities like Delhi and Mumbai are around ₹1,06,860 per 10 grams for 24-karat purity, which is a modest decrease from recent highs due to changes in domestic policy and fluctuations in the worldwide market. Demand is increasing as holiday seasons like Onam, Navratri, and Diwali draw near, raising estimates of yearly consumption to 800-900 tonnes.
However, it’s important to comprehend GST on gold 2025 before you visit the jeweller or click “buy” on digital gold platforms. Today, September 4, 2025, the 56th GST Council meeting confirmed that the tax rates on gold under the new “GST 2.0” framework will remain at 3% of the metal’s value and 5% of making charges. This stability coincides with more extensive reforms that simplify the GST slabs to mostly 5% and 18%; however, in order to safeguard the industry, gold is not affected by these changes.
Together with a 6% customs duty reduction from Budget 2024–25 (down from 15%), importers and buyers may see a 2-4% decrease in overall gold costs. However, many people ignore the additional cost that GST adds, which might cause your bill to increase by thousands. This comprehensive article explores GST rates on gold jewellery in India in 2025, as well as estimates for different shapes and purities, industry impacts, exemptions, historical background, and professional strategies.
The Evolution of GST on Gold: From Chaos Before 2017 to Stability in 2025
Let’s examine the history of gold taxation in India in order to understand the current system.
The Tax Environment Before the GST Era Was Fragmented
Prior to July 1, 2017, gold was subject to a mixture of taxes, including 1% excise duty, customs duties of up to 10%, and 1-2% VAT, depending on the state. Price differences, smuggling, and evasion resulted from this; bills were inflated by hidden costs, while effective rates were between 2 and 3 percent. Due to opaque pricing, buyers were left with the brunt of taxes, even though jewellers frequently absorbed some of them.
Introduction of the GST and Its First Effects
In an effort to promote transparency and a pan-Indian market, GST combined this into a 3% gold value tax. The diamond industry protested the initial hikes, but jewellers were able to balance their raw material costs thanks to input tax credits (ITC). Due to the industry’s formalisation by 2025, black money flows have decreased and government revenue from gold alone has increased to about ₹10,000 crore annually.
In an effort to promote transparency and a pan-Indian market, GST combined this into a 3% gold value tax. The diamond industry protested the initial hikes, but jewellers were able to balance their raw material costs thanks to input tax credits (ITC). Due to the industry’s formalisation by 2025, black money flows have decreased and government revenue from gold alone has increased to about ₹10,000 crore annually.
Important Turning Points Towards 2025
- 2018–2020: To clear up any confusion, charges will be made at 5%.
- Budget 2024: Customs duty is reduced to 6%, which lowers base costs and so lessens the burden of GST.
- 2025 GST Council: “GST 2.0” exempts gold from slab rationalisation; small jewellers should prioritise ease of compliance.
Although gold taxes has become more predictable as a result of this progression, buyers still need to handle complexities.
Comprehensive GST Rates for Gold Types and Forms in 2025
Rates differ by form but are consistent. They are all covered by HSN Chapter 71.
GST on physical gold
- 24-Karat Gold (Bars, Coins, Biscuits): 3% of the entire value (no making costs) of 24-karat gold (bars, coins, and biscuits). Perfect for purely financial investments.
- Jewellery weighing 22 and 18 carats: 3% of the gold value plus 5% of the manufacturing cost (usually 8–15% of the value).
- Silver jewellery: Silver jewellery has a comparable structure of 3% + 5%.
GST in Other Formats
- Jewellery with diamonds or gem sets: 3% on metal plus 5% on creation; diamonds at 0.25% if loose.
- Digital Gold: 3% of the total amount paid at delivery.
- ETFs and sovereign gold bonds: tax-free options with no GST.
Despite industry requests, there will be no rate decreases; stability comes first
Detailed GST Calculation on Gold: Examples for Various Situations
Learn the maths to identify inconsistencies
Fundamental Formula
(Gold Price × Weight × Purity Factor) + Making Charges + Other Fees = Taxable Value.
GST is 3% for the gold component and 5% for manufacturing.
Example 1: 10 grams of 22K jewellery, or 10%
- Prices for gold range from ₹1,06,860/10g (24K) to ₹97,950 (22K) (91.67% purity).
- Gold is worth 97,950 rupees.
- Earning: ₹9,795.
- Total before GST: ₹1,07,745.
- 3% of 97,950 (₹2,939) plus 5% of 9,795 (₹490) equals ₹3,429 in GST.
- ₹1,11,174 in the end.
Example 2: 10 grams of 24K bar
- The amount is ₹1,06,860.
- 3% GST (₹3,206).
- Total: ₹1,10,066.
Example 3: Old Gold Exchange
GST only on net new value plus manufacturing.
GST Comparison Table for 10 Grams (Prices as of September 2025)
| Purity/Type | Gold Value (₹) | Making (₹) | GST (₹) | Total (₹) |
| 24K Bar | 1,06,860 | 0 | 3,206 | 1,10,066 |
| 22K Jewellery | 97,950 | 9,795 | 3,429 | 1,11,174 |
| 18K Jewellery | 80,145 | 8,015 | 2,805 | 90,965 |
| Silver (100g) | 1,23,871 | 12,387 | 4,338 | 1,40,596 |
Prices range from ₹35 to ₹200, including hallmarking.
How Customs Duty and GST Affect Gold Prices in 2025
GST raises expenses by 3–4%, although a customs drop to 6% (from July 2024) has stabilised imports and reduced smuggling. ITC helps the industry, but small craftspeople have trouble complying. Buyers: Price respite of 2-3% is anticipated, but tariffs and US election instability are still a threat.
Sector-Wide Impacts
- Demand: Despite tariffs, a festive boost.
- Exports: Competitiveness is aided by zero GST.
- In contrast Globally: Singapore’s 0% VAT is higher than India’s 3% + 6% duty, which is lower than the UAE’s 5% VAT.
Compliance, Special Regulations, and Exemptions in 2025
- Free of Duty for Passengers: Females: 40g (₹1 lakh); males: 20g (₹50,000 maximum).
- Second Hand Scrap: GST on merchants’ margins for second-hand or scrap.
- Agriculture Tools: Tools used in agriculture are exempt.
- Digital Gold: conversion rate of 3%.
Large jewellers must e-invoice; MSMEs benefit from GST 2.0.
Advanced Purchasing Techniques to Reduce the Impact of GST
- Select Bars Over Jewellery: GST is not made.
- Negotiate: Reduce to 5–8%.
- Buy Pure 24K: Purchase Pure 24K to increase its resale value.
- Opt for Bonds/ETFs: Choose bonds or ETFs, which are GST-free.
- Time Purchases: Post-duty cuts are time purchases.
- Verify Bills: Check the bills separately to ensure correct GST.
- Go Digital: Augmont and other platforms provide transparency.
Dispelling Myths and Steering Clear of Risks
- Myth: GST No refunds for customers.
- Risk: Unreported Imports: Serious sanctions.
- Myth: Variations in States Are All the Same.
Frequently Asked Questions (FAQs )
What is India’s gold GST rate for 2025?
5% on making and 3% on value.
In September 2025, did the GST Council alter the gold rates?
No; unaltered by GST 2.0.
What is the 2025 customs duty on gold?
6% for imports.
Does digital gold have a distinct GST?
3% upon actual delivery.
What is the current price of gold on September 4, 2025?
24K at ~₹1,06,860/10g.
Can I buy gold without paying GST?
No, but reduce using forms without charging.
Conclusion
With stable rates providing certainty amidst GST 2.0 adjustments, GST on gold continues to play a significant role in your purchasing decisions in 2025. This tutorial gives you the tools you need to successfully manage taxes, from thorough calculation to strategic advice. It’s a good time, with stable prices and customs relief, but make an informed purchase. Share your experiences below and get clarification from experts: What impact has GST had on your gold purchases?
Disclaimer: This article is only meant to provide information. For individualised guidance, speak with a financial professional.
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I’m Rashid Ali, a personal finance blogger and content creator at SavingSecret.in, helping young adults in India master saving, investing, and tax planning. I simplify money topics like budgeting, IPO updates, and stock market tips to make finance easy and actionable. Follow me for smart money moves that actually work!