GST on Gold — 3% Rate, Making Charges & Total Tax
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
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 |
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.
Duty-free gold allowance from Dubai (2026)
The duty-free gold allowance is 20 grams (up to ₹50,000) for an adult man and 40 grams (up to ₹1,00,000) for an adult woman, and only for those who have stayed abroad for more than one year. It applies to jewellery only — gold bars, coins and biscuits are never duty-free. Bringing gold home often coincides with the end of a Gulf posting, so if you're settling your affairs before returning, our UAE gratuity calculator works out your end-of-service payout too.
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.