GST on Gold: What You Need to Know After India’s Major GST Reforms

Hi there! If you’ve noticed headlines about sweeping GST reforms in India—think two new tax slabs, rates changing for cars, electronics, and more—you may be wondering: what about gold? Well, here’s the simple answer: the GST on gold is still 3%, and that hasn’t changed.

What Just Happened?

On September 3, 2025, the GST Council met and rolled out a large-scale revamp of India’s tax structure. They condensed the old system into two main slabs: 5% and 18%, with a steep 40% rate for certain “sin and luxury” goods. These reforms aim to simplify compliance and reduce rates on everyday items. That said, gold and silver remain in their own special 3% bracket and are untouched by the change. The reform officially kicks in on September 22, just in time for the festive season.

Official Statements & Expert Input

Finance Ministry officials clarified that while the GST system has been simplified, precious metals fall into a separate category. Gold and silver continue to attract a 3% GST. Experts point out that this decision was made to maintain stability in the jewellery market and prevent sudden price shocks for buyers and jewellers.

What It Means for You

If you’re planning to buy jewellery or bullion, there’s good clarity here—no surprise hikes. The GST remains 3% on gold, whether it’s coins, bars, or jewellery. On top of that, making charges are still taxed separately at 5%.

For example, if you’re buying jewellery worth ₹1 lakh, expect ₹3,000 GST on the gold itself, and another ₹250 if making charges are ₹5,000. Knowing this breakdown helps you plan better before making a purchase.

Market & Public Reaction

Markets and traders welcomed the clarity. Since the GST fix doesn’t touch gold, demand in the bullion and jewellery markets is expected to remain steady. Everyday buyers also find comfort in predictable tax costs, especially with weddings and festivals just around the corner.

Bottom Line

In short: gst on gold remains steady at 3%, and सोना चांदी buyers can plan purchases without worrying about tax surprises. While most other goods saw tax cuts, precious metals stayed out of the adjustment. For now, any changes in gold prices will come from the global market or seasonal demand, not GST.

If you’re in the market for jewellery or bullion, the outlook is clear—taxes are predictable, and planning purchases just got a little easier.