GST on Gold & Jewellery in India (2026): Rate, Making Charges & HSN
Gold jewellery is taxed at 3% on the gold value plus 5% on making charges — a structure GST 2.0 left unchanged. This guide shows the rates, HSN codes, a full worked calculation, and the rules for coins, bars, digital gold and old-gold exchange.
Part of: The Complete GST Guide for Small Business in India (2026)
Gold has a two-part GST: 3% on the value of the gold itself and 5% on the making (labour) charges. The GST 2.0 reforms of September 2025 did not change either — gold stayed exactly where it was. Here's how it works, with a worked example jewellers can reuse at the counter.
Quick answer: 3% GST on the gold value + 5% GST on making charges. Gold coins and bars are 3%.
Gold GST rates at a glance
| Item | GST rate | HSN code |
|---|---|---|
| Gold (metal value) — jewellery, coins, bars | 3% | 7108 / 7113 |
| Making / labour charges | 5% | 9988 (job work) |
| Diamonds / precious stones set in jewellery | varies (often 1.5–3%) | 7102 / 7103 |
| Silver, platinum (metal value) | 3% | 7106 / 7110 |
Worked example
Say a gold ornament's metal value is ₹1,00,000 and the jeweller charges ₹10,000 as making charges. GST = 3% of ₹1,00,000 (₹3,000) + 5% of ₹10,000 (₹500) = ₹3,500 total. The invoice should show the gold value and making charges as separate lines so each carries its correct rate.
Old-gold exchange & digital gold
When a customer exchanges old gold for new, GST is generally charged on the new item; the value of old gold given in exchange reduces the amount payable, but the treatment can vary by structure — confirm with your CA. Digital gold and gold ETFs follow their own rules; physical delivery attracts the 3% like any gold purchase.
FAQs
Did GST on gold change under GST 2.0?
No. Gold remained at 3% on value and 5% on making charges even after the 22 September 2025 rate reforms.
Is making charge GST separate from gold GST?
Yes. The gold metal is 3%; the making/labour charge is a service taxed at 5%. Showing them separately on the invoice keeps the billing correct and transparent.
General information only, not tax advice; rates can be revised by the GST Council. Verify current rates and HSN for your exact items on CBIC notifications or with your CA. Last reviewed: September 2026.
Bill jewellery correctly with KukBook
KukBook splits gold value and making charges on the invoice with the right rate on each, tracks purity/weight, handles old-gold exchange lines, and prepares your GST returns automatically.
