The GST rate on gold in India is set at 3% (1.5% CGST + 1.5% SGST) on the value of gold. For example, on a gold purchase worth ₹1,00,000, the total GST payable is ₹3,000. This gold GST rate applies to all forms of gold, including jewellery, coins, and bars.
GST on gold purchase in India attracts 3% GST (1.5% CGST + 1.5% SGST) rate on the value of gold. So, if the value of gold being purchased is Rs. 10,000 the total GST payable on the transaction will be Rs. 300.
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.
GST on 24 carat physical gold is set at 3%. This rate applies to all forms of pure gold—whether in the form of gold bars, coins, or gold jewelry.
In simple terms, the formula is: Final Jewellery Price = (Gold Rate per gram * Weight of gold in the piece) + Making Charges + 3% GST + Hallmarking Charge. If the piece has diamonds or other stones, their cost would be added as well before applying GST.
No, GST of 3% is applicable on digital gold purchases, just like physical 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.
Maximum marginal rate is the highest rate of tax at any income level. This means for those with incomes between Rs 2 crore and Rs 5 crore, 39% will be the highest applicable tax rate, and for those with incomes above Rs 5 crore, it will be 42.74% — the highest tax rate since 1992.
The revised GST on gold tax slabs declared on June 3rd, 2017, was set at a rate of 3%. It means that all gold items, both completed and unfinished, are subject to a 3% fee, and paid by the buyer, i.e., the end-user. Over and above the customs duty of 10% and GST of 3%, a 5% surcharge was added as making charges.
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.
Net price = Original cost – GST
For example, if the cost of a product after GST of 18% is Rs. 118, its original cost is 118 – [100/(100 + 18%)}], which equates to Rs. 100.
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.
Conditions. Concessional rate of duty @ 6% ( BCD@5% + AIDC@1% ) is applicable for gold to Indian Passport holders and persons of Indian origin if the stay is for more than 6 months. Short visits up to a total of 30 days during the six months shall be ignored.
GST on Gold Exemptions
Registered jewellers can claim an Input Tax Credit (ITC) of 2% on these expenses. However, this exemption specifically benefits gold jewellery exporters, and domestic buyers do not receive any relief from this provision.
If you sell gold purchased over two years ago and earn a capital gain of ₹50,000, your tax liability would be ₹6,250 (12.5% of ₹50,000). Additionally, a 4% cess of ₹250 applies, making the total tax liability ₹6,500. These provisions came into effect on July 23, 2024, under the Finance Bill 2024.
How to Avoid Paying GST on Gold-Based Jewellery? This is possible by reselling old gold. The amount does not attract tax, provided it is used to purchase new jewellery. Before GST, a 3% charge was made on selling old gold even though new gold was bought.
The Indian Government has introduced new rules for buying gold to increase transparency and curb misuse. Buyers must now show valid documents like PAN card for purchases above ₹2 lakh, and Aadhaar or income proof for higher-value transactions. Splitting bills to avoid these requirements will also be strictly monitored.
For example, if you are buying gold jewellery worth ₹ 50000, and the making charges and taxes amount to ₹ 5000, the total value of the transaction would be ₹ 55000. The GST charge on the transaction would be 3% of ₹ 55000, which is ₹ 1650.
Surcharge and Cess:
Surcharge under the New Regime (for individuals below 60 years): Income over ₹50 lakh but under ₹1 crore: 10% of income tax payable. Income over ₹1 crore but under ₹2 crore: 15% of income tax payable. Income over ₹2 crore but under ₹5 crore: 25% of income tax payable.
Examples of income that are not taxable in India include agricultural income, gifts and inheritances, interest on EPF and PPF, scholarships and awards, life insurance proceeds, leave encashment, gratuity, Long-Term Capital Gains (LTCG), and interest on tax-free bonds.
Amitabh Bachchan tops the list by paying 120 crore in tax. Shah Rukh Khan, Thalapathy Vijay, Salman Khan, Virat Kohli and many others also pay huge amounts every year. These numbers come from public reports and estimates, but they clearly show how big the earnings of Indian superstars really are.
And, while gold dealers generally don't report smaller purchases to the IRS, they do have reporting obligations when you sell certain types or quantities of precious metals back to them. This includes some popular products, such as specific gold bars and high-volume bullion coins.
Reputable gold buyers in London, like us, require valid identification to comply with anti-money laundering regulations.
For married women, the limit is 500 grams, and for unmarried women, it is 250 grams. However, if you sell your gold within 3 years of purchasing, a short-term capital gain tax will be assessed on it by the government. And if you sell the gold beyond the 3-year limit, you have to pay a long-term capital gain tax.