How GST Affects Gold & Silver Prices in India

GST is the quiet line item on your gold or silver invoice that most buyers glance past — but it's a real, fixed part of the final price, and it's worth understanding exactly what it applies to before you're standing at the billing counter.

The Basic Rate

Gold and silver jewellery, coins, and bars attract 3% GST in India, applied on the total value — meaning the metal value plus making charges combined, not just the raw gold or silver price. This is a flat rate regardless of purity or the item's category (jewellery, coin, or bar).

What About Making Charges Specifically?

Making charges themselves also attract 5% GST when billed as a separate line item by the jeweller. In practice, many jewellers fold making charges into a single combined invoice value and apply 3% GST across the whole amount rather than splitting the two rates — this is common and generally compliant, but if you want to understand exactly how your specific invoice breaks it down, it's a fair question to ask before you pay. See our making charges guide for how that portion of the bill is calculated in the first place.

A Worked Example

Building on the making-charges example: a 10-gram gold chain at ₹7,000/gram with an 18% making charge.

Does GST Apply to Digital Gold and ETFs?

Physical delivery of gold purchased digitally (when you convert digital gold to a physical coin) attracts GST at the same 3% rate as any other physical purchase. Gold ETF units themselves, being financial securities traded on the stock exchange, don't attract GST in the same way — you pay brokerage and fund expense ratios instead. See our ETF vs physical vs digital comparison for the fuller cost picture across all three forms.

Old Jewellery Exchange

When you exchange old gold jewellery toward a new purchase, GST is typically applied only on the net additional value — not on the full price of the new item — since the old gold's value is being adjusted against the bill rather than sold separately. Confirm this treatment with your specific jeweller, as invoicing practices can vary.

This article is for general informational purposes and does not constitute tax or investment advice. GST rates and rules are set by the Indian government and can change — confirm current rates with a tax professional or the official GST portal before relying on this for a purchase or filing decision.