GST on Gold Jewellery
See Exactly What You're Paying in Tax — Full Breakdown
Enter Jewellery Details
Purity multiplier:
Effective rate: ₹/g for selected purity
GST Breakdown
| Component | Amount | GST Rate | GST Amount |
|---|---|---|---|
| Gold Value | |||
| Making Charges | 3% | ||
| Hallmarking Fee | ₹45.00 | 5% | ₹2.25 |
| Total GST | |||
| Final Price |
Price Before GST
Total GST Paid
Final Price
Why Does India Tax Gold Jewellery?
India is the world's second-largest gold consumer, importing 700–800 tonnes annually. The government levies GST on gold to bring the jewellery trade into the formal economy, reduce cash transactions, and generate revenue. Prior to GST (2017), gold attracted multiple state-level taxes; GST unified them into a single 3% rate.
3% on Gold Value
Applied on the pure gold value after accounting for purity. Lower than the pre-GST cascading taxes that often reached 4–5%.
3% on Making Charges
Making charges are a service — taxed at 3% like other skilled services. Typical making charges: ₹300–800/gram for plain pieces, ₹800–2000/gram for intricate designs.
5% on Hallmarking
BIS hallmarking fee (₹45 per item, up to 5 pieces) attracts 5% GST. This adds just ₹2.25 to a hallmarked piece.