Updated: January 7, 2026

Gold jewellery in India continues to sit in its own stubborn corner of the GST system. Despite multiple GST Council meetings, budget announcements, and endless headlines promising “major reforms,” the GST on gold jewellery remains unchanged going into 2026. This guide explains what the “new GST on gold jewellery” actually means, how rates are applied, how invoices should look, and how buyers and jewellers can avoid costly misunderstandings.

1) NEW GST ON GOLD JEWELLERY

SEO snippet: As of January 2026, GST on gold jewellery in India remains 3% on gold value and 5% on making charges. No GST Council revision altered gold rates in 2025–26. (CBIC, PIB)

What “new GST” really means in 2026

When people search “new GST on gold jewellery”, they are usually reacting to:

• Union Budget headlines
• GST Council meetings
• Social media claims about rate cuts or hikes

The reality is much less dramatic.

There is no new GST rate on gold jewellery as of January 2026.
The long-standing structure continues:

• 3% GST on the value of gold
• 5% GST on making (labour) charges, if charged separately

The 2025–26 GST rationalisation exercise (often called GST 2.0) focused on slab simplification, compliance tightening, and rate corrections in FMCG, services, and logistics. Precious metals were deliberately left untouched to avoid demand shocks in a politically and culturally sensitive market.

This split treatment matters because:

• Gold is classified as goods
• Making charges are treated as services
• Valuation, invoicing, and ITC rules differ for each

Authoritative source:
CBIC GST Rates Portal
https://cbic-gst.gov.in/gst-goods-services-rates.html

Expanded FAQs

Q: Has GST on gold jewellery changed in 2025 or 2026?
A: No. As of January 2026, GST remains 3% on gold value and 5% on making charges. No notification changing this has been issued.

Q: Why do people keep saying “new GST on gold”?
A: Because GST Council meetings create speculation. Actual tax changes only occur via official CBIC notifications, not headlines.

2) NEW GST RATE ON GOLD JEWELLERY

SEO snippet: GST on gold jewellery continues at 3% on metal value (CGST 1.5% + SGST 1.5%) and 5% on making charges. IGST applies for inter-state sales.

Current working structure (2026)

1) GST on gold value

• Rate: 3%
• Intra-state:
• CGST 1.5%
• SGST 1.5%
• Inter-state / online inter-state:
• IGST 3%

Applies uniformly to:

• Gold jewellery
• Gold bars
• Gold coins
• 18K, 22K, and 24K gold

2) GST on making charges

• Rate: 5%
• Treated as a service
• Must be shown separately on invoices where charged independently

Worked example

Authoritative analysis:
Mondaq – GST rates on gold & making charges
https://www.mondaq.com/india/sales-taxes-vat-gst/1613790/gst-rates-on-gold-18-22-24-carat-making-charges

FAQs

Q: Is the GST rate different for 22K vs 24K gold?
A: No. GST applies on value, not purity. Rate stays at 3%.

Q: Does IGST apply for online gold purchases?
A: Yes, if the supply is inter-state.

3) GST ON GOLD JEWELLERY – NEW BUDGET CONTEXT

SEO snippet: The 2025–26 GST Council and Union Budget discussions did not change GST rates on gold jewellery. Gold remained outside slab rationalisation. (PIB)

What the budget changed — and didn’t

According to official communications released through the Press Information Bureau (PIB) after GST Council meetings in 2025:

• No reduction or increase in GST on gold jewellery
• Focus remained on compliance, analytics, and slab cleanup elsewhere
• Gold was intentionally excluded due to inflation sensitivity and cultural demand

Indirect effects may exist:

• Lower logistics costs
• Reduced input taxes for jewellers
• Marginal price relief, but not from GST

Official source:
PIB – GST Council recommendations
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2163555

FAQs

Q: Can GST on gold be reduced in a future budget?
A: Possibly, but until a notification is issued, the current structure applies.

Q: How do I verify real GST changes?
A: Only trust CBIC notifications and PIB releases.

4) NEW GST RATE ON GOLD JEWELLERY IN INDIA – VALUATION RULES

SEO snippet: GST valuation for jewellery is governed by Notification No. 11/2017, including deemed valuation rules for composite supplies.

Valuation rules and the “70% rule”

Under Notification No. 11/2017 (Central Tax – Rate), the government provides valuation clarity when goods and services are bundled.

In certain composite scenarios:

• 70% of total consideration is deemed goods
• 30% is deemed services

This rule helps prevent disputes when invoices fail to clearly split metal value and making charges.

Why this matters

• Prevents arbitrary taxation
• Protects buyers during exchanges
• Standardises GST treatment

Official notification PDF:
https://d23z1tp9il9etb.cloudfront.net/download/gstlaw/NOTIFICATION%20NO.%2011_2017-CENTRAL%20TAX%20%28RATE%291724408331.pdf

FAQs

Q: Does the 70% rule apply to all jewellery purchases?
A: No. It applies in specific composite supply situations.

Q: Should buyers rely on deemed valuation?
A: No. Always insist on itemised invoices.

5) IS GST APPLICABLE ON GOLD JEWELLERY?

SEO snippet: GST applies to physical gold and jewellery purchases. Gold ETFs and Sovereign Gold Bonds are not subject to GST on purchase.

When GST applies

GST applies to:

• Physical gold jewellery
• Gold bars and coins
• Digital gold (treated as physical delivery by most platforms)

GST does not apply (on purchase):

• Gold ETFs
• Sovereign Gold Bonds (SGBs)

Note: Management fees for ETFs still attract GST.

Reference:
Kotak Mutual Fund – Gold ETF vs Physical Gold
https://www.kotakmf.com/Information/blogs/gold-etf-vs-physical-gold_

FAQs

Q: Is digital gold GST-free?
A: Usually no. Most platforms charge 3% GST.

Q: Are SGBs fully GST-exempt?
A: Yes, on purchase and redemption.

6) WHAT IS THE GST ON GOLD JEWELLERY? – FINAL BREAKDOWN

SEO snippet: GST on gold jewellery in India = 3% on gold value + 5% on making charges. Consumers cannot claim ITC.

Key points

• GST rate does not depend on purity
• Consumers cannot claim ITC
• Registered jewellers may claim ITC on services and inputs
• Invoices must show:
• Gold weight and rate
• Making charges
• GST breakup

ClearTax explainer:
https://cleartax.in/s/gst-impact-on-gold

7) GST ON GOLD JEWELLERY – TANISHQ EXAMPLE

SEO snippet: Branded jewellers like Tanishq clearly disclose GST and making charges, reducing billing disputes.

Tanishq’s policies show:

• GST charged at 3% on gold
• Making charges shown separately
• Transparent exchange and buyback rules

Tanishq Digital Gold FAQ:
https://www.tanishq.co.in/digigold/home

8) GST ON GOLD JEWELLERY MAKING CHARGES

SEO snippet: Making charges attract 5% GST. Jewellers may claim ITC subject to job-work and compliance rules.

Making charges include:

• Labour
• Design
• Craftsmanship

Job-work scenarios with karigars can involve:

• Reverse charge mechanisms
• Compliance complexity

Industry FAQ (GJC):
https://www.gjc.org.in/pdf/gst/FAQs.pdf

9) PRACTICAL TIPS FOR BUYERS & JEWELLERS

SEO snippet: Clear invoices, exchange transparency, and choosing the right gold format can reduce GST impact.

Buyer checklist

• Demand itemised invoices
• Check GST breakup
• Verify hallmarking
• Compare making charges

Smarter alternatives

• ETFs or SGBs for investment
• Physical jewellery only for usage or gifting

Investor guide:
https://www.angelone.in/knowledge-center/income-tax/gst-on-gold

10) CONCLUSION – KEY TAKEAWAYS (2026)

• No new GST on gold jewellery as of January 2026
• GST remains 3% on gold value + 5% on making charges
• Valuation rules protect buyers, but invoices matter
• ETFs and SGBs avoid GST on purchase
• Always rely on CBIC and PIB, not social media noise

Official GST rates:
https://cbic-gst.gov.in/gst-goods-services-rates.html