GST on Gold Jewellery 2026: Rate and Calculation Guide

By Vikas, BlueStone Editorial

GST on gold jewellery is 3% of the total transaction value for a retail sale in India. CBIC specifically says this 3% applies whether making charges are shown separately or included in the jewellery value, so a buyer should not normally add another 5% retail tax on making charges.

TL;DR: Multiply the taxable transaction value by 3%. For an intra-state purchase, the invoice generally shows 1.5% CGST plus 1.5% SGST or UTGST. For an inter-state supply, it generally shows 3% IGST. The 5% figure often seen online relates to registered jewellery job work, not an extra retail levy on the customer's jewellery bill.

GST on Gold Jewellery in 2026: The Direct Answer

The current CBIC goods rate table lists articles of jewellery under HSN 7113 at 1.5% central tax plus 1.5% state or union territory tax, which is 3% in total. The rate is the starting point; the taxable base determines the amount.

The current retail rule is 3% GST on the total transaction value of an article of jewellery, not 3% on gold plus a second 5% retail charge on making charges.

CBIC lists articles of jewellery under HSN 7113 at a total GST rate of 3%, shown as 1.5% central tax plus 1.5% state or union territory tax for an intra-state supply.

For an inter-state supply, the same total rate is generally collected as 3% IGST instead of separate central and state components.

Keep these quick takeaways handy:

1. The taxable base is the transaction value of the jewellery supplied to the customer, including making charges even when those charges appear separately on the invoice.
2. This distinction matters because adding 3% on the metal value and 5% on retail making charges can overstate what CBIC's sectoral FAQ describes for a finished jewellery sale.
3. The rate does not change merely because the jewellery is 14 karat, 18 karat, or 22 karat, although the underlying product value can differ.
4. Studded jewellery still needs a clear invoice that explains the article and relevant value components, but the buyer should verify the actual tax line rather than calculate from assumptions.
5. A repair, custom job, exchange, or business to business job work arrangement can involve different facts, so the retail rule should not be applied blindly to every gold-related service.
6. When an invoice is unclear, ask the seller to identify the taxable transaction value, the applicable tax type, and the mathematical basis before paying.

Gold GST Rate in India: What the 3% Covers

CBIC’s gems and jewellery sectoral FAQ directly answers the making charge question: 3% applies to the total transaction value of jewellery whether the making charge is shown separately or not.

The gold GST rate in India for articles of jewellery under HSN 7113 is 3% in total, according to the current CBIC rate table.

CBIC's gems and jewellery FAQ goes further by stating that 3% applies to the total transaction value whether making charges are shown separately or not.

Transaction value is the practical starting point for a regular arm's length retail sale because it is the agreed value of the supply reflected on the tax invoice.

Keep these quick takeaways handy:

1. The value may contain the precious metal component, making or fabrication charges, and other elements that form part of the finished jewellery supply.
2. The invoice can describe those components separately for transparency without automatically turning them into separately taxed retail supplies.
3. For an intra-state sale, 1.5% CGST and 1.5% SGST or UTGST add up to the same 3% total.
4. For an inter-state sale, 3% IGST generally replaces the separate components, so the buyer's total GST rate does not become 6%.
5. Hallmarking information and tax information answer different questions: the hallmark supports declared purity, while the GST line records tax on the supply.
6. Use the seller's current tax invoice and official CBIC guidance for the transaction instead of an old rate graphic or an unsourced calculator.

How to Calculate GST on Gold Jewellery

The reusable calculation is simple once the correct retail taxable base is known. Use the total transaction value before GST, not the final tax-inclusive amount and not only the metal component.

Invoice situation	Calculation	Total GST
Intra-state jewellery sale	Taxable value × 1.5% CGST, plus taxable value × 1.5% SGST or UTGST	3%
Inter-state jewellery sale	Taxable value × 3% IGST	3%
Cross-check	Taxable value × 1.03, then subtract taxable value	3% of taxable value

Start with the total taxable transaction value shown for the finished jewellery before GST, including making charges that form part of that supply.

Use the formula: GST equals taxable transaction value multiplied by 3 divided by 100.

Use a second check by multiplying the pre-tax value by 1.03; the difference between that result and the pre-tax value should equal the GST amount.

Keep these quick takeaways handy:

1. For an intra-state invoice, calculate CGST as taxable value multiplied by 1.5 divided by 100 and calculate SGST or UTGST the same way.
2. Add the two intra-state components to confirm they equal 3% of the same taxable base.
3. For an inter-state invoice, calculate IGST as taxable value multiplied by 3 divided by 100 without adding separate CGST and SGST again.
4. Do not remove making charges from the retail taxable base merely because the seller has itemized them.
5. Do not apply the 5% job work rate to the customer's finished jewellery sale unless the transaction is genuinely a separate job work service and is invoiced on that basis.
6. Round only as the invoice and applicable tax rules require, then compare your result with the printed component totals.

Gold Jewellery Examples for Applying the GST Formula

The 3% transaction value method is the same across jewellery categories, although each final invoice has its own taxable value. Use these BlueStone examples to practise the review sequence: identify the article, check purity and net precious metal weight, locate the pre-tax transaction value, and verify the GST arithmetic. The carousel shows designs only and does not publish prices.

Worked GST Calculation Examples for Buyers

These neutral value-unit examples demonstrate the arithmetic without publishing a product price or a changing market rate. Replace the example base with the taxable transaction value on the actual seller invoice.

Hypothetical taxable value	GST at 3%	Total after GST
100 value units	3 value units	103 value units
250 value units	7.5 value units	257.5 value units

Example one uses 100 taxable value units for a finished jewellery sale. Three percent of 100 is 3, so the total after GST is 103 value units.

If example one is intra-state, the invoice split is 1.5 CGST units plus 1.5 SGST or UTGST units, which still totals 3 units.

If example one is inter-state, the invoice generally shows 3 IGST units, not 3 IGST units plus another 3 in local taxes.

Keep these quick takeaways handy:

1. Example two uses 250 taxable value units, including making charges. GST is 250 multiplied by 3 divided by 100, which equals 7.5 value units.
2. The total after GST in example two is 257.5 value units, subject to the invoice's lawful rounding treatment.
3. If 40 of the 250 units represent itemized making charges, the retail GST base remains 250 under the CBIC sectoral answer because the total transaction is a jewellery sale.
4. Calculating 3% on 210 units and a separate 5% on 40 units would produce a different answer and does not match the cited CBIC retail transaction guidance.
5. These examples use neutral value units so they teach the method without presenting a live product price or implying a market rate.
6. For a real invoice, replace the example base with the seller's stated taxable transaction value and retain the same arithmetic.

Why 5% on Making Charges Is Often Misunderstood

The same CBIC sectoral FAQ separates two situations. It states 3% on the customer’s total jewellery transaction value, while a registered job worker pays 5% on job charges in the upstream manufacturer and job worker arrangement.

The 5% figure appears in official guidance for job work on jewellery, which is different from the retailer's finished jewellery sale to an end customer.

CBIC says a registered job worker who receives gold from a jewellery manufacturer and returns finished goods pays 5% GST on the job charges only.

The manufacturer can generally use eligible input tax credit from that job work when paying tax on the later outward supply, subject to the law and records.

Keep these quick takeaways handy:

1. For the end-customer sale, CBIC separately says 3% applies to the total transaction value of jewellery whether making charges are shown separately or not.
2. A separately printed making charge on a retail invoice does not by itself prove that the buyer should be charged a second 5% tax line.
3. The correct treatment follows the nature of the supply, not the label used in a blog graphic or informal estimate.
4. A customer who supplies their own metal to an artisan for a genuine making service may face a different arrangement from buying finished jewellery owned and sold by a retailer.
5. Repairs, alterations, remaking, custom fabrication, and exchange transactions can also depend on their contracts and invoice structure.
6. For an unusual transaction, request a tax invoice that identifies the supply clearly and consult a qualified tax professional if the treatment remains uncertain.

CGST, SGST, and IGST on Gold Jewellery

The component names depend on whether the supply is treated as intra-state or inter-state. They do not stack into a second full rate on an ordinary invoice.

CGST is the central component and SGST is the state component on a qualifying intra-state supply, while UTGST is used in relevant union territory cases.

At the 3% jewellery rate, the usual intra-state split is 1.5% CGST plus 1.5% SGST or UTGST.

IGST generally applies to an inter-state supply and appears as one 3% component instead of the two local components.

Keep these quick takeaways handy:

1. The split determines where tax is accounted for, but it does not double the buyer's total jewellery GST rate.
2. Check that all components use the same taxable transaction value unless the invoice clearly contains a genuinely separate supply.
3. Add the displayed percentages first, then compare the result with 3% to catch an obvious duplicate tax entry.
4. Confirm the seller and place-of-supply details when the tax type looks unexpected, especially for delivery across state borders.
5. Do not decide the place of supply only from the buyer's home address because delivery, billing, and transaction facts can matter.
6. Ask the seller to correct a genuine invoice error instead of adjusting the total privately or ignoring the mismatch.

GST When You Exchange Old Gold for New Jewellery

CBIC’s general GST FAQ gives an old gold exchange example and says the open market value of the entire new set is the value charged to GST in that scenario.

An old gold exchange should not be treated as if GST automatically applies only to the net cash paid after the exchange credit.

In its general FAQ, CBIC gives an example of a person exchanging 10 grams of gold while purchasing a new 20 gram set and says GST is charged on the open market value of the entire 20 gram set.

The exchange credit and the taxable value of the new jewellery answer different accounting questions, so subtracting one from the other can produce the wrong GST base.

Keep these quick takeaways handy:

1. Ask the jeweller to show the valuation of old gold, deductions if any, taxable value of the new article, and GST as separate, understandable entries.
2. Check whether stones, non-gold components, melting loss, or testing deductions affect the exchange credit rather than assuming they change the statutory GST rate.
3. Retain the old gold evaluation record and the new jewellery tax invoice together in case you later need to reconstruct the transaction.
4. An outright sale of old personal jewellery and an exchange linked to a new purchase are not necessarily documented in the same way.
5. Business sellers, dealers, and registered persons can have compliance issues that differ from a consumer disposing of personal jewellery.
6. For a complex exchange, ask for written valuation and tax treatment before surrendering the old item.

How to Read the GST Line on a Jewellery Invoice

Tax arithmetic is only one part of invoice review. The BIS jeweller guidance says a bill for hallmarked precious metal jewellery should also state the article description, net precious metal weight, purity in carat and fineness, and hallmarking charges.

Find the article description and confirm that it matches the jewellery you are receiving, including whether it is a single piece, pair, or set.

Locate the taxable transaction value before GST and identify whether making charges are included or shown separately for transparency.

Check the rate column for a total of 3% on the jewellery supply and identify whether the invoice uses CGST plus SGST or UTGST, or IGST.

Keep these quick takeaways handy:

1. Recalculate each tax component from the stated taxable base instead of applying the percentage to the final tax-inclusive total.
2. Confirm that the sum of the components equals the GST total and that the final amount follows the invoice arithmetic.
3. BIS says an invoice for hallmarked precious metal articles should include the article description, net precious metal weight, purity in carat and fineness, and hallmarking charges.
4. Compare the invoice purity with the mark on the jewellery and verify the HUID through the official BIS Care channel where applicable.
5. Ask for clarification if a label such as service charge, job work, labour, or exchange deduction changes the tax base without a clear explanation.
6. Keep the complete invoice, not only a payment receipt, because the item, weight, purity, valuation, and tax details work together.

A Buyer Checklist Before You Pay

Run the tax check while the jewellery, invoice, hallmark, and seller information are available together. A mismatch is easiest to resolve before the transaction is complete.

Confirm that the article description, quantity, and design on the invoice match the jewellery presented to you.

Check net precious metal weight separately from gross weight when stones, enamel, beads, or other non-metal components are present.

Match the stated purity in carat and fineness with the hallmark on the item and verify the HUID when applicable.

Keep these quick takeaways handy:

1. Identify the taxable transaction value before GST and confirm how making charges are reflected.
2. Calculate 3% of that taxable value and compare it with the invoice's total GST.
3. For an intra-state transaction, confirm that 1.5% CGST plus 1.5% SGST or UTGST equals 3% in total.
4. For an inter-state transaction, confirm that 3% IGST is not followed by duplicate local tax components.
5. For an old gold exchange, review the old gold valuation and the new jewellery taxable value as separate entries.
6. Pause and ask for a corrected or explained invoice if the calculation, purity, weight, HUID, or transaction description does not reconcile.

Common GST Mistakes to Avoid

Most buyer errors come from using the wrong taxable base, combining alternative tax components, or confusing retail supply with job work. Check the nature of the transaction before applying any percentage.

Adding 5% to retail making charges after already applying 3% to the complete jewellery transaction can double count part of the tax base.

Applying 3% to the tax-inclusive final total instead of the pre-tax transaction value produces an incorrect circular calculation.

Adding CGST, SGST, and IGST together on one ordinary supply confuses alternative tax structures and inflates the total.

Keep these quick takeaways handy:

1. Using the metal value alone can understate the taxable base when making charges form part of the finished jewellery transaction.
2. Assuming old gold exchange credit reduces the GST base ignores CBIC's example that values the entire new article in the cited exchange case.
3. Treating hallmarking and GST as the same check can leave either purity or tax arithmetic unverified.
4. Using an old blog example with historical duties or market figures can mix current GST with outdated cost assumptions.
5. Accepting a payment slip without article, weight, purity, and tax details weakens the buyer's record.
6. Forcing a standard retail formula onto a repair, custom job, or business supply without examining the contract can lead to the wrong conclusion.

Explore Gold Jewellery with the Tax Formula in Mind

Product category changes do not replace the formula. Browse for design fit, then calculate GST from the current tax invoice for the specific article you select.

The same 3% transaction value method can help you review an invoice for a chain, ring, earring, pendant, bangle, or bracelet.

Use product browsing to compare design and category fit, but calculate tax only from the final seller invoice for the chosen article.

A lighter-looking design is not automatically taxed at a different rate, although its taxable transaction value can differ.

Keep these quick takeaways handy:

1. Studded and plain gold designs can have different value components, so compare net precious metal weight and invoice detail rather than appearance alone.
2. If size is uncertain, resolve ring or bangle sizing before purchase because an alteration can create a later service transaction.
3. Check purity, HUID, article description, and tax arithmetic together instead of letting one attractive design detail replace the buyer checklist.
4. Use the carousel as a category orientation tool and follow each product link for current design information without relying on article prices.
5. Keep the GST formula available when you receive the final invoice and recalculate from the stated taxable base.
6. A clear purchase decision connects a design you will wear with documentation you can understand and retain.

How to Use This GST Guide Before Buying

Save the 3% formula, ask for the pre-tax transaction value, and check the invoice before payment. Confirm whether the supply is intra-state or inter-state, compare the tax components with the same base, and keep the invoice with the hallmark and HUID records. If the transaction is a repair, custom job, exchange, or business supply, ask for the specific treatment in writing.

More Gold Jewellery Buying Guides

Continue with BlueStone guides to checking gold purity, understanding gold making charges, reviewing a gold jewellery cost calculation, and buying gold jewellery online safely.

Frequently Asked Questions About GST on Gold Jewellery

What is the GST for gold jewellery in India in 2026?

The GST on a retail sale of gold jewellery is 3% of the total transaction value. CBIC says this applies whether making charges are shown separately or not. An intra-state invoice generally splits the rate into 1.5% CGST and 1.5% SGST or UTGST, while an inter-state invoice generally shows 3% IGST.

Is GST charged separately on gold and making charges?

For a finished jewellery sale to an end customer, CBIC says 3% applies to the total transaction value whether making charges are shown separately or not. This means the itemized making charge is normally part of the retail taxable base. The official 5% figure relates to registered job work charges, which is a different supply.

How do I calculate GST on gold jewellery?

Take the pre-tax transaction value of the finished jewellery and multiply it by 3, then divide by 100. For an intra-state purchase, calculate 1.5% CGST and 1.5% SGST or UTGST on the same base. For an inter-state purchase, calculate 3% IGST and do not add local components again.

What is the gold tax rate on an intra-state purchase?

The total gold jewellery GST rate remains 3%. On an intra-state invoice, it is generally presented as 1.5% CGST plus 1.5% SGST or UTGST. These are two components of one total rate, not two separate 3% taxes. Recalculate both from the same taxable transaction value and confirm their sum.

Does the 5% GST on making charges apply to a retail jewellery buyer?

Not as an automatic extra tax on a regular finished jewellery sale. CBIC's sectoral FAQ says 3% applies to the total transaction value for the end customer. The 5% rate described in the same FAQ applies to a registered job worker's job charges when working for a jewellery manufacturer. A genuine custom service may need separate analysis.

How is GST calculated when I exchange old gold for new jewellery?

CBIC gives an exchange example in which a customer provides 10 grams of old gold and purchases a new 20 gram set. It says GST is charged on the open market value of the entire 20 gram set. Ask the jeweller to show the old gold credit and new jewellery taxable value separately before calculating tax.

What should I check on a gold jewellery tax invoice?

Check the article description, taxable value, 3% total GST, and the correct CGST plus SGST or UTGST split, or IGST line. BIS also says a hallmarked jewellery invoice should state net precious metal weight, purity in carat and fineness, and hallmarking charges. Match these details with the item and retain the invoice.

Is the GST rate different for 14K, 18K, and 22K gold jewellery?

The cited GST rate for articles of jewellery does not change simply because the gold purity is 14K, 18K, or 22K. Purity and design can change the underlying transaction value, which changes the tax amount, but the 3% rate applies to the relevant taxable value. Verify the purity mark and invoice separately.

Conclusion

For a regular retail purchase, calculate GST on gold jewellery at 3% of the total transaction value, including making charges that form part of the finished jewellery supply. Confirm the correct CGST plus SGST or UTGST split, or IGST line, and keep the complete invoice with the article, weight, purity, hallmarking, and tax details. For a custom service, repair, business supply, or unusual exchange, ask for written treatment and qualified advice before assuming the standard retail facts apply.