GST on gold making charges in India

GST on gold jewellery in India is 3%, and the GST Council's FAQ says that 3% applies to the total transaction value of the jewellery, whether or not the making charge is shown separately. So when a jeweller sells you a finished piece, the GST Council's published answer is one rate on the whole bill, not a separate rate on the making charge.

The value in the box is a calculated international figure, before import duty, GST and making charges. You can see the same value for every carat on the gold rate page for India, and for 22K on the 22K rate page.

What is the GST rate on gold in India?

The GST Council's sectoral FAQ on gems and jewellery says GST on these goods has been payable at 3% since 1 July 2017, and that 3% IGST is also payable on imports of precious metals in addition to basic customs duty.

India restructured its GST slabs from 22 September 2025. An Angel One explainer states that physical gold and silver stayed at 3% under those changes. We could not open a government list that says so in those words, so check the current rate schedule if you are making a decision that depends on it.

The same FAQ answers the exact question most buyers ask. A jeweller asked whether to charge 3% on the total value of a chain, or 3% on the gold and 5% on the making charges. The answer was 3% of the total transaction value of the jewellery, whether the making charge is shown separately or not.

Is GST on making charges 3% or 5%?

This is where it gets confusing, so here are the two situations.

The 5% rate in the GST Council's FAQ is for job work. A West Bengal advance ruling in 2023 took the same view of making jewellery out of a principal's gold, treating it as job work taxable at 5%. That ruling turned on one applicant's facts, so treat it as an illustration.

If you hand your own gold to a goldsmith to make a piece, you are closer to the second row. Ask how the goldsmith is going to bill it.

You will see other explainers and some bills that show 3% on the metal and 5% on the making charge. Angel One's explainer uses that split. It does not match the GST Council's answer for a sale of finished jewellery, so if your bill shows it, ask the jeweller why. A tax professional can tell you which treatment applies to you.

How a gold jewellery bill adds up

Here is an example with round numbers. They are not today's prices. The piece is 10 grams of 22K with a making charge of 10%.

If that same bill were split as 3% on the gold and 5% on the making charge, GST would be ₹3,500, or ₹200 more. On a heavier piece that gap grows, so read the bill. To test your own numbers, the gold calculator for India adds a making charge and 3% GST.

The India Bullion and Jewellers Association says its indicative jewellery rates are published without 3% GST and making charges, so those two lines are added on top of any rate of that kind.

GST on gold coins, biscuits and bars

The 3% figure is not limited to jewellery. Angel One's explainer describes physical gold as staying at 3%, and the GST Council FAQ refers to 3% on precious metals. Searches for "gst on gold coin" and "gst on gold biscuit" are looking for the same rate, and there is no making charge line in the same sense on a plain bar. Check the invoice for any fabrication charge a seller adds.

Gold making charges per gram

Making charges are not set by the government. Each jeweller decides them, and they can be quoted per gram or as a percentage of the gold value. Whatever form they take, convert them to one figure so you can compare two jewellers. Our guide to the 22K gold rate per gram shows why a lower board rate does not always mean a lower bill.

A percentage making charge also rises when the gold price rises, even if the piece does not change. A per-gram charge does not. Keep that in mind when you compare, and look at the previous days table if you want to see how far the value has moved.

What to check on the invoice

• The rate per gram of the carat you bought
• The weight, and whether any stones have been separated from the gold weight
• The making charge, written as an amount
• GST, with the rate shown
• The hallmark details, including the HUID

These rules were checked on 10 November 2026. GST rates and notifications can change, so confirm the current position with the jeweller or a tax professional.

Sources

• GST Council, sectoral FAQ on gems and jewellery
• West Bengal Authority for Advance Ruling, Aabhushan Jewellers, February 2023
• Angel One, gold at 3% GST under GST 2.0
• India Bullion and Jewellers Association, indicative rates