Gold GST After 22 September: What Every Buyer Must Know

Gold GST after 22 September stays at 3% on the gold value and 5% on jewellery making charges

💎 Invoices for coins, bars, and jewellery will continue to include the same GST components even as broader GST slabs shift for other goods and services.

What changed on 22 September

India’s GST revamp to a two-slab structure of 5% and 18%, plus a special 40% band for select luxury and sin goods, took effect on 22 September 2025 as part of GST 2.0. The GST Council retained the existing treatment for bullion, keeping 3% GST on gold and silver items and 5% GST on making charges for jewellery, meaning no direct change to the tax burden on gold purchases from this reform. 📅

Gold GST changes explained

Under GST 2.0, the general slab simplification did not alter bullion-specific rates, which remain 3% on gold value for jewellery, coins, and bars, and 5% on making charges when applicable. The 3% rate is typically split as 1.5% CGST and 1.5% SGST on intra-state purchases, or levied as 3% IGST on inter-state transactions, preserving the pre-reform structure for Gold.

Impact on gold price, savings, investments

Because GST on gold is unchanged, the reform itself does not reduce the invoice-level tax on bullion, so immediate savings for buyers come primarily from market drivers like global prices, currency, and import duties rather than GST 2.0. Earlier budget measures that cut customs duties on gold—lower BCD and AIDC taken together—reduced the tax load on imports, which can ease domestic prices irrespective of the unchanged GST rate on purchases. 📈

Real-life case study: festive jewellery purchase

Consider a Mumbai family purchasing a 22K gold necklace before Navratri with a base gold value of ₹1,00,000 and making charges of ₹8,000, both before and after 22 September 2025. GST is calculated as 3% of the gold value (₹3,000) and 5% of making charges (₹400), so the total indirect tax component remains ₹3,400 across the reform date because bullion rates were not revised under GST 2.0. 🛍️

Hidden costs to watch

The unchanged 5% GST on making charges still adds to the final bill, and higher craftsmanship fees at premium boutiques can inflate the tax even without a change in statutory rates. In addition, buy-sell spreads, hallmarking fees, and retailer margins can materially affect effective outlay and resale value, often overshadowing the unchanged GST headline rate. ⚠️

Market context and timing

Domestic gold prices in September have moved more on global cues and currency than on GST, with futures and spot reacting to dollar moves and rate expectations rather than slab rationalisation for bullion. With the festival and wedding season ahead, stable GST on gold offers tax predictability, while market dips driven by macro events can create entry points for staggered buying. 🌍

Properly labeled chart

GST components on a typical 10g jewellery invoice remain unchanged under GST 2.0

How to optimise purchases

Opting for BIS-hallmarked jewellery with transparent itemised invoices ensures correct application of 3% on gold value and 5% on making charges, limiting disputes and overcharging risks. Comparing making charges across retailers and considering plain designs with lower labour can reduce the taxable base for the 5% levy, directly trimming the final invoice without relying on GST changes. 💡

Investment takeaways

For long-term investors, the unchanged GST structure means total returns are driven by entry price, holding horizon, and macro hedging benefits rather than tax arbitrage, reinforcing the case for disciplined, staggered allocation. Those considering coins or bars should note that 3% GST applies similarly to these forms, while storage, purity assurance, and resale liquidity become the decisive factors for outcomes. 📊

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