How 3% GST is added to gold and silver jewellery, coins and making charges, with a worked example of a real-looking bill.
The gold and silver rates shown on boards and on this site do not include GST. GST is added when you buy. Here is how it is usually worked out, with an example you can check against your own bill.
The rates in short
| What you buy | GST usually charged |
|---|---|
| Gold jewellery (gold value + making charges) | 3% |
| Gold coins and bars | 3% |
| Silver jewellery, coins and bars | 3% |
| Making charges when a jeweller only works on your own gold | 5% on the making charge |
The GST Council's own FAQ for the gems and jewellery sector says GST on jewellery is 3% of the total value, whether or not the making charge is shown separately. The 5% rate is only for job work, when a jeweller works on gold that you supply. Some websites say an extra 5% is added to making charges on every bill; that is not how the FAQ describes it. The September 2025 GST rate changes kept gold and silver at 3%. Tax rules can change again, so check the latest rates on your bill.
A worked example
You buy a 22K chain with a net weight of 10 grams. The day's 22K rate is ₹13,000 per gram and the shop's making charge is 12%.
| Gold value: 10 g × ₹13,000 | ₹1,30,000 |
| Making charge: 12% of ₹1,30,000 | ₹15,600 |
| Total before tax | ₹1,45,600 |
| GST: 3% of ₹1,45,600 | ₹4,368 |
| Final price | ₹1,49,968 |
On a bill, GST is often split into CGST 1.5% + SGST 1.5% when you buy in your own state, or shown as IGST 3% for some other sales. The total is the same 3%.
You can try your own numbers in the calculator on any city page, for example Chennai's calculator.
Exchanging old gold
When you exchange old gold for new jewellery, the shop first values your old gold, then subtracts that value from the new bill. How GST is shown on an exchange bill can differ between shops. Ask the shop to show you the GST line clearly, and keep the bill. More in selling or exchanging old gold.
Stones and other parts
Diamonds, precious stones and other parts may be billed separately, sometimes with a different GST rate. Ask for each part to be listed on its own line with its weight and price.
Things to check on your bill
- The shop's GST number (GSTIN) is printed on the bill.
- Each item shows its purity, HUID, gross weight, net weight and rate.
- Making charges, wastage and stone charges are on separate lines.
- GST is worked out on the right total, and the final sum adds up.
Also read our 10 things to check before you buy.
The quick formula
For most jewellery bills you can check the total in one line:
Final price = (gold value + making charges + other charges) × 1.03
So for every ₹1,00,000 of gold and making charges, GST adds ₹3,000.
Common questions
Does the rate on the shop board include GST?
No. Rate boards, newspapers and this site show the price without GST. It is added on the bill.
Can I get the GST back?
Not for personal purchases. If you buy jewellery for yourself or your family, the GST is part of the cost. Only businesses registered for GST can claim tax credit on business purchases, under their own rules.
Is GST charged on digital gold and coins?
Yes. Coins, bars and digital gold bought through apps also carry 3% GST, which is one reason the buying price is higher than the selling price on the same day.
Why does my bill show CGST and SGST?
For sales inside one state, the 3% is split equally between the central and state governments: 1.5% CGST and 1.5% SGST. You still pay 3% in total.
This guide is general information for buyers. Rules and tax rates can change; check with your jeweller, bank or a qualified adviser before big decisions.