The GST rate on gold in India is a flat 3% on the value of the metal, applicable to 18K, 22K, and 24K gold, as well as digital gold. Additionally, a 5% GST rate is applied to the making charges of gold jewelry.
GST Rate on Purchase of Physical Gold
GST on gold purchase in India attracts 3% GST (1.5% CGST + 1.5% SGST) rate on the value of gold.
The key takeaway is that, when you purchase bullion, you do not have to pay GST/HST when you purchase the product. There are capital gains taxes when you sell your bullion.
Investment-grade gold—such as bullion bars and certain coins—can be sold without incurring GST, provided they meet specific criteria set by the ATO.
What are the new GST rules on gold? The GST levied on any gold jewellery is on its making charges or as a pre-determined percentage of gold's overall value. Usually, 3% GST is imposed on gold-based jewellery while 5% GST is levied on its making charges.
How to tackle GST on Gold?
Sales in bulk of "monetized bullion", nonmonetized gold or silver bullion, and numismatic coins which sales are substantially equivalent to transactions in securities or commodities through a national securities or commodities exchange, are exempt from both the sales tax and the use tax.
The gold tax rate in the U.S. is generally a maximum of 28% for long-term capital gains on physical gold and related investments like certain ETFs, classifying them as "collectibles," which is higher than the standard 20% for stocks. If held for one year or less, profits are taxed as ordinary income at your regular tax bracket. Additional taxes, like the 3.8% Net Investment Income Tax (NIIT), may apply for higher earners.
A 3% GST is uniformly levied on the value of 18K, 22K, and 24K gold, divided equally between Central GST (CGST) and State GST (SGST). Additionally, a 5% GST is applied specifically on making charges, which cover the labour and craftsmanship costs involved in designing gold jewellery.
The Magic Number: When The Government Wants To Know About Your Gold. Here's the deal: any single transaction of $10,000 or more in cash requires reporting. That's not just for gold - that's for anything.
The Canada Revenue Agency (CRA) taxes gold and precious metals as capital assets. 50% of capital gains from selling gold and other metals are taxable at the investor's marginal tax rate. If gold is considered business inventory (for dealers or traders), it is taxed as business income rather than capital gains.
Yes, Costco generally charges sales tax on gold bars if your state requires it, but taxes usually apply when you sell the gold for a profit (capital gains tax), treating it as a collectible with potentially higher rates (up to 28% for long-term gains). The key factor is your state's sales tax laws, as some states tax gold bullion purchases, while others exempt them, making record-keeping of your purchase price crucial for tax time.
Precious metals bullion in Canada, such as coins, bars, ingots and wafers of gold or silver with a minimum purity of 99.50% for Gold and Platinum and 99.9% for silver are exempt from GST/HST.
As of mid-January 2026, 1 gram of 24k (pure) gold costs roughly between $147 to $151 USD, fluctuating with the live market, with slight variations depending on the dealer and if you're buying a bar or just the spot price, as retail prices include premiums above the fluctuating spot price.
Buying physical gold gives investors the flexibility to resell it when needed, but there is no guarantee that investors will get the same market price when they sell, and physical gold does not produce a yield while it is held. As an investment asset, the profit made from selling gold is subject to capital gains tax.
The key difference between 22K and 24K gold lies in their purity. 24K gold is 99.9% pure, making it the purest form of gold, while 22K gold contains 91.6% pure gold, with the remaining 8.4% made up of alloy metals like copper or silver for added strength.
If you pay for gold with cash (including cashier's checks, money orders or bank drafts) in amounts exceeding $10,000, dealers are required to file Form 8300 with the IRS. This applies whether it's a single transaction or multiple related transactions.
The short answer is no, gold is not fully exempt from inheritance tax (IHT). However, gold can provide some significant tax benefits, especially when it comes to capital gains and VAT.
Reputable gold buyers in London, like us, require valid identification to comply with anti-money laundering regulations.
How Can You Save Taxes on Long-Term Capital Gains from Gold Investments?
All coins with legal tender made by The Royal Mint are capital gains tax free. This includes Gold Sovereign, Gold Half Sovereign, Gold Britannia, Silver Britannia etc.
The IRS primarily becomes interested in gold transactions when they meet certain thresholds. For sales of gold coins, bullion, or substantial amounts of jewelry, dealers are required to file Form 1099-B if the transaction exceeds $600.
When purchasing investment grade gold and silver bullion, there is no GST, but the definitions of 'investment grade' for precious metals are very specific. Here are the standards: Gold must be 99.5% pure or greater. Silver must be 99.9% pure.