Gold kept its special 3% GST rate under GST 2.0 — it was never part of the 5/18/40 restructure. But the tax on a jewellery purchase isn't just 3%: making charges billed separately attract 5% GST. This calculator shows the complete tax picture on any gold purchase, and explains the rules for bringing gold from Dubai.
🪙 GST on a Gold Purchase
Total price you pay
Total GST
Pre-tax total
⚠️ Disclaimer: CalcSmart is not a tax, financial, legal or medical advisor. Calculators and content here are for general information only, compiled from publicly available rules and rates that change frequently. Always verify the accuracy and freshness of figures with official sources (e.g. incometax.gov.in, cbic.gov.in, your bank) or a qualified professional before acting on any result.
GST Rates on Gold in 2026
Component
GST rate
Notes
Gold value (coins, bars, jewellery metal)
3%
1.5% CGST + 1.5% SGST; unchanged by GST 2.0
Making charges (billed separately)
5%
Treated as a job-work service
Composite invoice (single price)
3%
Whole amount taxed as gold supply — usually cheaper for the buyer
Digital gold
3%
Charged on each purchase
Old gold exchanged at jeweller
No GST
Exchange value is deducted before GST is applied to the new purchase
💡 Money-saving tip: ask the jeweller to bill a single composite price. 3% on everything beats 3% on gold + 5% on making charges. On ₹12,000 of making charges, that's ₹240 saved — small, but free.
Bringing Gold From Dubai to India
Gold is typically 5–7% cheaper in Dubai because the UAE charges no GST equivalent on investment gold and 5% VAT (often refundable for tourists) on jewellery. Indian customs rules decide whether the saving survives the flight home:
Passenger
Duty-free allowance
Condition
Male adult
20 g of gold jewellery (max ₹50,000 value)
Must have stayed abroad > 1 year; jewellery only — bars, coins and biscuits are never duty-free
Female adult
40 g of gold jewellery (max ₹1,00,000 value)
Beyond the free allowance, customs duty applies on the excess (up to 1 kg per eligible passenger may be imported on payment of duty — declare it at the Red Channel). Duty rates on gold have moved repeatedly — the import tariff was raised again in 2026 — so check the current CBIC baggage-rules notification before flying with significant quantities. After adding duty and the 3% GST you'd have paid anyway, large "Dubai savings" often shrink to low single digits.
Tax When You Sell Gold
GST applies when you buy; capital gains tax applies when you sell. Physical gold held over 24 months is taxed at 12.5% LTCG (without indexation, post-July-2024 rules); under 24 months, gains are added to your income and taxed at slab rates. Check your slab with our income tax calculator.
Frequently Asked Questions
3% on the gold value (1.5% CGST + 1.5% SGST), unchanged by the GST 2.0 reform of September 2025. Making charges billed separately attract 5% GST. If the jeweller bills one composite price, the entire amount is taxed at 3%.
If you've lived abroad for more than a year: men may bring 20 g of gold jewellery (up to ₹50,000 in value) and women 40 g (up to ₹1,00,000) duty-free. Only worn/personal jewellery qualifies — gold bars, coins and biscuits always attract duty. Excess gold must be declared at the Red Channel; up to 1 kg per passenger may be imported on payment of duty.
No GST is charged on the old gold you hand over. The jeweller deducts its value and GST applies only to the net new purchase (gold at 3%, separate making charges at 5%).
Yes — 3%, the same as physical gold, charged on every purchase. Platforms deduct it from the amount you invest, so ₹1,000 buys roughly ₹970.87 of actual gold.
Selling attracts capital gains tax, not GST. Gold held more than 24 months: 12.5% long-term capital gains tax (no indexation under post-July-2024 rules). Held 24 months or less: the gain is added to your income and taxed at your slab rate.