Gold Tax in India: GST, Import Duty, and Capital Gains

These are three separate tax events: importing the metal, buying a finished product, and selling an asset at a gain. Combining them into one “gold tax rate” produces the wrong answer.

This guide was reviewed on 19 July 2026. Rates and classification can change, and this is not personal tax advice.

GST when buying gold or jewelry

The Central Board of Indirect Taxes and Customs states in its Gems & Jewellery sectoral GST FAQ that GST is 3% of the total transaction value of jewelry, whether the making charge is shown separately or not.

For a finished piece sold by a jeweler, the practical estimate is:

subtotal = gold value + making charge + other taxable additions
GST = subtotal × 3%
invoice total = subtotal + GST

The often-repeated “3% on gold plus 5% on making charges” mixes two transactions. A 5% job-work rate can apply when a job worker charges the jeweler for manufacturing services. The jeweler's sale of the finished jewelry to the customer is generally taxed at 3% on the total transaction value under the official FAQ.

The live India gold-rate page shows spot-derived metal value before GST, making charges, and the dealer spread. It is a reference for checking the metal component, not a retail invoice.

Import duty changed to about 15% in May 2026

India cut the effective gold import duty to 6% in July 2024, then raised it again from 13 May 2026. The Ministry of Finance's May 2026 Monthly Economic Review describes a 10% Basic Customs Duty plus a 5% Agriculture Infrastructure and Development Cess, taking the effective import duty on gold and silver to approximately 15%.

Import duty is paid at the border and influences the landed cost available to domestic sellers. It is not a second 15% line that a jeweler simply adds to every retail invoice after quoting a domestic gold rate. Domestic benchmark and dealer prices already react to landed cost, supply, demand, and available inventory.

For observable dealer quotes, see physical gold prices in India. The difference between a local quote and converted international spot is the premium; it can move independently of the statutory duty for a time.

Capital gains when selling physical gold

The income-tax treatment starts with the gain:

capital gain = sale proceeds − acquisition cost − eligible transfer expenses

The Income Tax Department's capital-gains FAQ explains the rules applying to transfers from 23 July 2024. For physical gold, a holding period longer than 24 months generally makes the gain long term. The long-term rate is 12.5% without indexation; a shorter holding is generally taxed at the applicable slab rate.

The actual calculation can differ for inherited assets, gifts, business inventory, non-residents, or transactions around a rule change. Keep the purchase invoice because tax is charged on the gain, and the gain cannot be established cleanly without acquisition cost.

Records and product checks

Keep the tax invoice, payment record, weight, purity, hallmark identifier, making charge, and sale receipt. A useful invoice separates the metal value and making charge even though GST on a finished jewelry sale applies to the combined transaction value.

Before buying, compare like with like:

• 24K bullion against other 24K bullion, not 22K jewelry;
• price per gram after adjusting for purity;
• final invoice total, not the advertised gold rate;
• dealer buyback terms, because the resale spread is part of the cost.

The world gold-tax guide shows how India's tax stack compares with other markets, while the physical-premium guide explains why the retail gap does not always equal the statutory rates.

A worked purchase example

Suppose the metal value is ₹100,000 and the jeweler charges ₹12,000 for making and other taxable additions. Under the 3% total-transaction treatment:

subtotal = ₹112,000
GST = ₹3,360
invoice total = ₹115,360

That example excludes stones or other separately treated items and assumes the jeweler is supplying a finished piece in a standard domestic transaction. Use the seller's tax invoice for the real calculation.

Developers building this estimate into a product can start with an India gold-price app using the live INR carat endpoint.

Primary sources

CBIC Gems & Jewellery sectoral GST FAQ · Ministry of Finance Monthly Economic Review, May 2026 · Income Tax Department capital-gains FAQ