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New GST on Gold Jewellery: Rates, Making Charges & FAQs

Short introductory paragraph:
New GST on gold jewellery — everything buyers and jewellers must know in 2025. Clear breakdown of the new GST rate on gold jewellery, making charges, valuation rules and FAQs to avoid surprise billing.

1) NEW GST ON GOLD JEWELLERY

SEO snippet: As of September 2025, the GST structure for gold jewellery in India continues to be 3% on the metal value and an additional 5% on making charges; recent GST-slab revisions did not change these rates. CBIC GSTPress Information Bureau

 Explanation (what “new GST” really means):
When people search “new GST on gold jewellery” they usually want to know whether any recent budget or GST-Council decision has changed how jewellery is taxed. The short answer: the government’s 2025 GST rationalization (GST 2.0) did not alter the long-standing structure for precious metals — gold remains taxed at 3% (split between Centre and State for intrastate sales) while labour/making charges on jewellery are separately taxed (commonly 5%). This distinction matters because the gold value and making charges are treated differently for valuation, invoices and ITC (input tax credit) rules. CBIC GSTMondaq

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Expanded FAQs (short Q→A):

  • Q: Has GST on gold jewellery changed in 2025?
    A: The GST framework for gold continues to include a flat 3% levy on the value of the gold itself, while any separate making charges typically attract an additional tax. As of 2025, no substantial revisions have been announced to these rates .Press Information Bureau
  • Q: Is the 3% GST inclusive of making charges?
    A: No — the 3% applies to the metal value; making charges are taxed separately (usually 5%). Mondaq

External links (authoritative source):

2) NEW GST RATE ON GOLD JEWELLERY

SEO snippet: The working structure used across marketplaces: 3% GST on gold value (1.5% CGST + 1.5% SGST) for domestic sale; 5% GST on making charges (taxable separately). MondaqTanishq

Detailed explanation & examples:

  • 3% on gold value: This is a flat rate applied to the assessed value of the gold element in the jewellery (applies to bullion, coins and jewellery). For intra-state sale it is usually split as CGST 1.5% + SGST 1.5%; for inter-state sales IGST 3% applies. Mondaq
  • 5% on making charges: Most jewellers and tax guides treat labour/making charges as a separate taxable component subject to 5% GST. This is the GST on services or work (conversion/ craftsmanship). Registered jewellers often account for input credits on such services differently (see next sections). Mondaqibja.co

Worked example: If metal value = ₹100,000 and making charges = ₹10,000:

  • GST on metal: 3% of ₹100,000 = ₹3,000
  • GST on making: 5% of ₹10,000 = ₹500
  • Total GST payable = ₹3,500 (bill will show both components)

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Expanded FAQs:

  • Q: How is the 3% split applied for intra-state purchases?
    A: It is normally CGST 1.5% + SGST 1.5% on the metal value. Mondaq
  • Q: Does IGST apply for online/interstate gold purchases?
    A: Yes — IGST 3% applies on inter-state supplies. CBIC GST

External link:

3) GST ON GOLD JEWELLERY NEW BUDGET

SEO snippet: The 2025 GST Council recommendations (GST 2.0) focused on rationalization of slabs and process changes; gold’s tax treatment was left intact — no change to the 3%/5% structure. Press Information BureauThe Times of India

What the “new budget” / GST Council meeting changed — and what it didn’t:
According to official government updates reported in September 2025, the GST Council discussed budget-related measures, focusing on rate rationalization and compliance simplification, while leaving jewellery-specific rates unchanged. While the overall slab architecture was reworked for many categories, the Council did not reduce or alter the specific GST rates for gold jewellery. The decision aimed at stimulating demand via cuts elsewhere; gold pricing and affordability may benefit indirectly (cheaper inputs, lower logistics costs), but the direct tax on gold remained unchanged. Industry reaction was mixed — relief for consumer spending in other categories, but no direct tax cut for gold buyers. Press Information BureauThe Times of India

Practical implications for consumers and jewellers:

  • As clarified in official communications around September 5, 2025, consumers and jewellers should not assume any new lower GST rate for gold jewellery—no such announcement was issued at that time.
  • Jewellers should ensure invoices clearly separate metal value, making charges and GST components (important for exchanges and resale). Press Information Bureau

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Expanded FAQs:

  • Q: Will a future budget reduce GST on gold jewellery?
    A: It’s possible but speculative — until a formal notification is issued by the government, the 3%/5% structure stands. Press Information Bureau
  • Q: How to verify budget changes quickly?
    A: Check PIB/CBIC/GST Council press releases and the official GST rates page. Press Information BureauCBIC GST

External link:

4) NEW GST RATE ON GOLD JEWELLERY IN INDIA

SEO snippet: The legal/notification basis for jewellery valuation and GST lies in the Government of India notifications (e.g., Notification No.11/2017) — read the valuation clauses to understand how tax is computed. d23z1tp9il9etb.cloudfront.net

Valuation rules & “70% rule” (how invoice value is split):
To avoid disputes on how much of the gross consideration is gold vs service, the Government has provided valuation guidance in GST notifications (Notification No.11/2017 and related updates). For certain listed supplies, the law deems 70% of the gross consideration as the value of goods and the remaining 30% as the value of taxable service. For jewellery invoicing this explanation is relevant because it standardizes the split between gold value and making/ service components for tax application and simplifies administration. d23z1tp9il9etb.cloudfront.net

Why this matters for a buyer:

  • If a seller does not clearly separate metal value and making charges, the deemed valuation rule can still be used to compute GST.
  • For exchanges (old jewellery for new), how the jeweller invoices will determine whether GST is charged only on value-addition or on the whole bill — demand clear invoices. d23z1tp9il9etb.cloudfront.netibja.co

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Expanded FAQs:

  • Q: What’s the 70% rule in simple terms?
    A: When certain supplies are bundled, rules sometimes deem 70% as goods and 30% as service to standardize tax application — see the official notification for specifics. d23z1tp9il9etb.cloudfront.net
  • Q: Does the 70% rule always apply to every piece of jewellery?
    A: No — it applies where the notification covers those supplies or when a composite supply issue arises; practice varies, so rely on invoice details. d23z1tp9il9etb.cloudfront.net

External link:

5) IS GST APPLICABLE ON GOLD JEWELLERY?

SEO snippet: Yes — GST is applicable on physical gold/jewellery purchases (3%) and on making charges (5%); investment vehicles like Gold ETFs and Sovereign Gold Bonds are treated differently (generally exempt from GST on the purchase). MondaqKotak Mutual Fund

When GST applies and when it doesn’t:

  • Applies: Purchase of physical gold (bars, coins, jewellery) — metal value taxed at 3% and making charges usually at 5%. Mondaq
  • Does not apply (or applies differently): Gold ETFs, Sovereign Gold Bonds (SGBs) and other securities are not subject to GST on the purchase of the security itself; however, fund management fees or expense ratios may carry GST as a service charge. Digital gold platforms may charge GST on the buy-side (as it is treated like physical delivery) — check platform T&Cs. Kotak Mutual FundTanishq

Practical buyer checklist:

  1. Ask for a detailed invoice showing metal value, making charges and the GST components.
  2. If buying a financial product (ETF/SGB), confirm GST treatment on the product vs expense ratio. Kotak Mutual Fund

LSI keywords: gst on physical gold, gold ETF gst exemption, sovereign gold bonds gst, digital gold gst rules

Expanded FAQs:

  • Q: Are Gold ETFs GST-exempt?
    A: Units of ETFs (being securities) are not liable to GST on the purchase/sale itself — management fees may attract GST. Kotak Mutual FundAngel One
  • Q: Is digital gold charged GST?
    A: Many digital-gold platforms add GST on the buy price (treated as physical delivery); always check platform FAQs. (See Tanishq digitalgold FAQ as an example). Tanishq

External link:

  • Kotak Mutual Fund / Kotak research — Gold ETF vs Physical Gold explanation. https://www.kotakmf.com/Information/blogs/gold-etf-vs-physical-gold_ (target="_blank", rel="nofollow")

6) WHAT IS THE GST ON GOLD JEWELLERY?

SEO snippet: The working rule: 3% on gold value + 5% on making charges (subject to valuation rules, job-work exceptions and ITC availability). Example calculations and invoice advice follow. Mondaqibja.co

Precise breakdown & invoice best-practice:

  • Gold value (3%): Applies to the assessed price of the metal content. The rate is uniform across 18K/22K/24K for GST purposes. Mondaq
  • Making charges (5%): Taxed separately; if a jeweller outsources to a job-worker or sub-contractor, reverse charge or special rules may apply for the jeweller’s compliance. Registered businesses often claim partial ITC related to making charges — the treatment can be technical and depends on the supplier’s status. ibja.co

Example (detailed): Purchase invoice details should show: metal rate per gram × grams (metal value) → GST @3%; making charge amount → GST @5%; any discounts, old-gold exchange deductions, hallmarking charges, or corporate discounts clearly itemized.

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Expanded FAQs:

  • Q: Does purity (22K vs 24K) change the GST rate?
    A: No — GST is applied on the value of the gold irrespective of purity; the same 3% applies. Mondaq
  • Q: Can a consumer claim input tax credit on jewellery purchases?
    A: No — ITC on consumer purchases of jewellery is not available; ITC rules apply to registered businesses/jewellers, not end consumers. ibja.co

External link:

  • ClearTax — comprehensive explainer on GST on gold & making charges. https://cleartax.in/s/gst-impact-on-gold (target="_blank", rel="nofollow")

7) GST ON GOLD JEWELLERY TANISHQ

SEO snippet: Major branded jewellers (example: Tanishq) display GST and making charges clearly; Tanishq’s digital gold pages explicitly mention GST = 3% on gold rate. Use branded FAQs to confirm company-level billing practices. TanishqBlogs

Brand example — why this matters:
Tanishq (part of Titan Company) is one of India’s largest jewellery retailers and strives for transparent billing: their digital gold information and store T&Cs show that the GST component is shown and that the listed gold prices are exclusive of GST (or that GST is applied as specified). Branded jewellers often have clear exchange/ buyback rules where they disclose how making charges, taxes and exchange deductions are calculated. Checking a brand’s FAQ or exchange policy prevents surprises during returns or exchanges. Tanishq+1

Buyer tips when dealing with branded jewellers:

  • Confirm whether the price is shown inclusive or exclusive of GST.
  • Request a printed invoice that itemizes metal value, making charges and GST. Branded jewellers usually follow strict invoicing and hallmarking norms — use their online FAQs for quick checks. Tanishq

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Expanded FAQs:

  • Q: Does Tanishq charge GST on digital gold?
    A: Tanishq’s digital gold FAQ states GST is charged (3% on gold rate) for purchases on their platform — see their Digital Gold FAQ. Tanishq
  • Q: If I exchange old gold at Tanishq, will GST be deducted?
    A: Exchange terms differ — Tanishq’s exchange T&Cs mention deductions for making charges and taxes on the original invoice; always confirm at point of sale. Tanishq

External link:

  • Tanishq — Digital Gold FAQ and buy page (example of brand-level GST disclosure). https://www.tanishq.co.in/digigold/home (target="_blank", rel="nofollow")

8) GST ON GOLD JEWELLERY MAKING CHARGES

SEO snippet: Making charges are taxable (commonly at 5%). Registered jewellers may claim partial ITC on these expenses — check job-work and reverse-charge rules to understand who pays what. Mondaqibja.co

How making charges are treated and typical complexities:

  • What are making charges? Labour and craftsmanship fees for converting metal into jewellery (design, labour, finishing). These are invoiced separately by reputable jewellers.
  • Tax rate: Making charges are commonly taxed at 5% GST. Historically, making charges had a higher tax under pre-GST regimes (service tax/VAT), but under GST the Council rationalized it downwards. Jewellers who are GST-registered can claim input tax credits for services and supplies used in jewellery production, which may reduce the overall GST liability on making charges after accounting for eligible credits.Mondaqibja.co

Job-work, karigars & reverse-charge:
When a jeweller outsources making to a karigar/job-worker, the GST/RCM treatment can be technical: the jeweller must ensure compliance for GST payment or reversal where the supplier is unregistered, and include wastage recovery when calculating the taxable base. Industry FAQs and trade bodies provide operational guidelines. gjc.org.inibja.co

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Expanded FAQs:

  • Q: Why do making charges sometimes appear higher than expected?
    A: Making charges reflect workmanship, design complexity, and brand premium; GST is calculated on the sum and listed separately. Mondaq
  • Q: Can jewellers reduce customer GST on making charges?
    A: Only by lowering making fees or through discounts; GST is statutory and must be applied correctly on the declared making charge. ibja.co

External link:

9) PRACTICAL TIPS FOR BUYERS & JEWELLERS (INVOICE, EXCHANGES, SAVING TACTICS)

SEO snippet: Always ask for a detailed invoice, compare total effective cost (including GST), and consider ETS/SGB/ETFs for investment exposure without GST on purchase. TanishqKotak Mutual Fund

Buyer checklist & saving ideas:

  1. Invoice clarity: Ensure invoice shows metal value, making charges, hallmark details and GST components. Ask for HSN/ SAC codes if needed. d23z1tp9il9etb.cloudfront.net
  2. Exchange transactions: If exchanging old jewellery, insist on a written calculation showing how much old gold value is set off — only the net new value should attract fresh GST (practice varies; check invoices). ibja.co
  3. Investment vs ornament: For pure investment exposure, consider Gold ETFs or Sovereign Gold Bonds (no GST on the purchase of the security), while physical jewellery will carry GST and making charges. Kotak Mutual Fund
  4. Negotiate making charges: For high-making designs, negotiate or compare across brands; small changes in making charges directly affect GST on that component. Blogs

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Expanded FAQs:

  • Q: Should I buy physical gold or ETFs to avoid GST?
    A: ETFs avoid GST on the purchase; owning physical gold provides tangible possession but comes with applicable GST and making charges. — choose based on your needs. Kotak Mutual Fund
  • Q: How do I check if my jeweller is compliant?
    A: To ensure your jeweller is compliant, request their GST registration, a detailed invoice, and proper hallmark certification; registered sellers usually provide cleaner invoices. Tanishq

External link:

10) CONCLUSION — KEY TAKEAWAYS & ACTION POINTS

SEO snippet: New GST developments in 2025 left gold jewellery taxation unchanged: 3% on metal + 5% on making charges; verify invoices, prefer transparent brands, and consider ETFs/SGBs for GST-free investment exposure. Press Information BureauMondaq

Summary & next steps for readers:

  • Current rule: Gold jewellery in India is taxed at 3% on the metal value and commonly 5% on making charges; valuation rules and the 70% deeming clause help determine the taxable split in bundled supplies. d23z1tp9il9etb.cloudfront.netMondaq
  • Practical actions: Before purchase, demand a clear itemized invoice; for investment intent consider ETFs or Sovereign Gold Bonds to avoid GST on the buy; monitor official CBIC and PIB announcements for any future changes. CBIC GSTPress Information Bureau

LSI keywords (final): gst on gold 2025 summary, gold jewellery taxation conclusion, how to buy gold gst tips

Expanded FAQs (final set):

  • Q: Will GST on gold jewellery definitely remain the same next year?
    A: Tax policy can change — always check official GST Council/CBIC notifications for confirmed changes. Press Information BureauCBIC GST
  • Q: Is my invoice the final authority?
    A: Yes — the invoice is the document for tax, exchange and resale. Save it and ensure it matches the statutory breakup. Tanishq

External link:

Citations (most load-bearing sources used)

  • CBIC — GST rates & notifications (official). CBIC GST
  • PIB — Recommendations of the 56th Meeting of the GST Council (Sep 2025). Press Information Bureau
  • Notification No.11/2017 (G.S.R. 690(E)) — legal basis and valuation rules (PDF). d23z1tp9il9etb.cloudfront.net
  • Mondaq / industry analysis — practical breakdowns of 3%/5% treatment. Mondaq
  • Tanishq — Digital Gold & FAQ / brand-level GST disclosure. Tanishq

 

The Jewelry and Precious & Semi-Precious Stones Industry