GST on Gold & Jewellery — Making Charges, Import Duty (2026)
GST on gold jewellery has two components: 3% on the gold value (HSN 7108) and 5% on making charges (labour/crafting). This results in an effective GST of approximately 3–5% on total jewellery billing depending on the making charge proportion.
Quick Reference
Gold/Bullion
3%
Gold Jewellery
3% + 5% making charges
Gold Coins (bank)
3%
Gold ETF/SGB
Exempt
HSN Code
7108 (raw), 7113 (jewellery)
GST Rate
3% (gold) + 5% (making)
HSN 7108 / 7113
Gold (Raw / Bar / Coin) — 3%
Pure gold, gold bars, gold coins, and gold bullion attract 3% GST under HSN 7108. This applies whether purchased from a jeweller, bank, or NBFC.
Gold Jewellery — 3% + 5% Making Charges
Finished gold jewellery (rings, necklaces, bangles) attracts 3% GST on the gold value component. Making/manufacturing charges attract 5% GST separately. The jeweller bills both components on the invoice.
Gold ETF and Sovereign Gold Bond
Gold ETFs and Sovereign Gold Bonds (SGBs) are exempt from GST. These are financial instruments, not physical goods.
Import of Gold — Customs + GST
Gold imported into India attracts basic customs duty (10–12.5%), IGST (3%), and Agriculture Infrastructure Development Cess (AIDC). Total import duty on gold can be 10.75–15% depending on the form.
ITC on Gold — Restricted for Jewellers
Jewellers can claim ITC on gold purchased for manufacturing. However, ITC reversal is required for exempt supplies (gold sold to exporters under zero-rating). Job work on jewellery attracts 5% GST.
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Example: Gold value ₹50,000 + Making charges ₹5,000. GST = 3% of ₹50,000 (₹1,500) + 5% of ₹5,000 (₹250) = Total GST ₹1,750. Invoice total = ₹56,750.
Yes. Gold coins and bars sold by banks attract 3% GST.
Yes. Input gold used in manufacturing jewellery is eligible for ITC. However, you must manage ITC reversal proportionally for exempt/export supplies.
Second-hand gold sold by jewellers attracts 3% GST on the margin (value added), not on the full sale value — under the Margin Scheme for second-hand goods.
