GST on Gold: Rates on Jewellery, Making Charges and Coins
Updated · Reviewed under our editorial policy
The gold rate you see on boards in Bangalore, including today’s rate on this site, does not include GST. On a jewellery bill, GST is added on top of the gold value and the making charges.
GST rates at a glance
| What you buy | GST |
|---|---|
| Gold jewellery, coins and bars (the metal) | 3% |
| Making charges on a single jewellery bill | 3% (taxed together with the gold) |
| Making charges billed separately as job work, e.g. when you give your own gold to be made into jewellery | 5% |
| Digital gold | 3% |
GST on gold is split equally between the centre and the state when you buy within Karnataka: 1.5% CGST and 1.5% SGST.
How GST works on a jewellery bill
When you buy a ready-made piece, the jeweller usually sells the gold and the work together as one supply, and 3% applies to the combined amount.
Example: a 10 g 22K chain at ₹13,000 per gram with 12% making charges.
| Line | Amount |
|---|---|
| Gold value (10 g × ₹13,000) | ₹1,30,000 |
| Making charges (12%) | ₹15,600 |
| Taxable value | ₹1,45,600 |
| GST at 3% | ₹4,368 |
| Total | ₹1,49,968 |
The per-gram rate in this example is for illustration only. Use the gold price calculator, which starts from today’s Bangalore rate.
When making charges attract 5%
If you hand over your own gold and pay a goldsmith only for the work, that work is a job-work service, and GST on the making charge is 5%. Some jewellers also show making charges as a separate service line. Ask how your bill is structured, because it changes the GST.
Selling or exchanging old gold
- Selling old jewellery for cash or bank transfer: an individual selling their own personal jewellery to a jeweller does not charge GST.
- Exchanging old gold for new jewellery: GST is charged on the new jewellery. Ask the jeweller to show the old-gold value, its purity test result and how it is adjusted on the bill.
Other rules to know when buying
- PAN: a jeweller will ask for your PAN for purchases of ₹2 lakh or more in a single bill.
- Cash: accepting ₹2 lakh or more in cash for a single transaction is not allowed under the Income Tax Act, so larger purchases need to be paid by card, UPI or bank transfer.
- Customs duty on imported gold is already reflected in the domestic gold rate. You don’t pay it separately at the counter.
Tax rules change. Check the current rate with the source below or your jeweller before a large purchase. This guide is general information, not tax advice.
Sources
Check today’s prices: gold rate today in Bangalore · gold price calculator