How Much GST is Applied to 22 Carat Gold in India

Current GST rate on 22 carat gold in India (2025)

When buying 22 carat gold in India, understanding the GST is important for accurate budgeting. In 2025, GST is levied at 3% on the making charges of gold jewellery, while the value of the gold itself is not taxed. This means you pay tax only for the craftsmanship or labour involved, not the metal. Being aware of this helps you estimate the total cost before purchase and avoid unexpected expenses. Checking the latest GST rates ensures you make well-informed decisions, whether buying jewellery for personal use, gifting, or investment purposes. 

How to calculate GST 22 carat on gold jewellery?

Calculating GST on gold jewellery is simple once you know the applicable rate. Currently, the 22 carat gold GST rate is 3%, which applies mainly to making charges rather than the gold itself. Here’s how you can estimate the tax:

• Determine the total value: Include the cost of gold, making charges, and any other applicable fees.
• Apply GST: Multiply the relevant value (usually making charges) by 3% to get the GST amount.
• Add GST to total: Combine the GST with the base value to know the final price.

For example, for jewellery worth Rs. 50,000, GST would be Rs. 1,500, making the total Rs. 51,500.

Many wonder, is there any GST on gold itself? Only making charges attract GST, while the gold metal remains exempt. Always check the latest GST updates before purchase to ensure accurate budgeting.

Example of GST on gold calculation

Here is a summary of the current GST rates and other taxes on gold in India:
 

GST on 22 carat gold exemptions

In India, the 22 carat gold GST rate is generally 3% on making charges, while the gold itself is exempt. Many people wonder, is there any GST on gold? Pure gold is not taxed, but the craftsmanship in jewellery attracts GST.

Some exemptions help reduce the overall tax burden. Supplies to the Reserve Bank of India (RBI) or refining of gold doré bars have lower customs duties, which lowers GST when sold. Small-scale jewellers and artisans with limited annual turnover can sell gold jewellery without charging GST. Charitable trusts and religious institutions are often exempt when receiving gold donations. These provisions support local businesses, traditional goldsmiths, and cultural practices while keeping gold more affordable for buyers.
 

Things to consider before buying 22 carat gold ornaments

Before buying 22 carat gold ornaments, consider the following factors to ensure you make a well-informed purchase:

1. Purity: 22 carat gold is 91.6% pure gold mixed with other metals for durability. Verify the purity through hallmark certification, ensuring the gold meets the BIS (Bureau of Indian Standards) standards.
2. Price: Gold prices fluctuate daily. Check the current market rates and compare prices across different jewellers to get the best deal.
3. Making charges: Jewellers charge making fees for crafting the ornaments, which can vary significantly. Negotiate these charges or look for fixed-rate making charges to save money.
4. Design and weight: Choose designs that suit your preferences and consider the weight of the ornaments, as heavier pieces will cost more.
5. Buyback policy: Check the jeweller's buyback or exchange policy. A good buyback policy ensures you can sell or exchange your ornaments in the future without significant loss.
6. Reputation of the seller: Purchase from reputable jewellers known for their quality and authenticity to avoid counterfeit products.