{"id":40547,"date":"2026-11-13T10:59:05","date_gmt":"2026-11-13T05:29:05","guid":{"rendered":"https:\/\/mybillbook.in\/s\/?page_id=40547"},"modified":"2026-11-13T14:18:52","modified_gmt":"2026-11-13T08:48:52","slug":"gold-gst-calculation","status":"publish","type":"page","link":"https:\/\/mybillbook.in\/s\/gst-goods-and-services-tax\/gold-gst-calculation\/","title":{"rendered":"Gold GST Calculation"},"content":{"rendered":"

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<\/span>\n\t\t\t\tGold GST Calculation: Formula, Making Charges & Examples\t\t\t<\/span><\/h1>\n\t\t\t\t\t<\/div>\n<\/div>[vc_empty_space height=”18px”][vc_column_text]<\/p>\n

Gold GST calculation in India generally uses a 3% GST rate<\/strong> for physical gold and finished gold jewellery. For a normal retail sale of finished jewellery, the tax is calculated on the total taxable transaction value, including making charges that form part of the sale. Separate qualifying jewellery job-work services may attract 5% on the service charges.<\/p>\n

To organise jewellery invoices, try GST invoicing software<\/a> for business records.<\/p>\n

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<\/span>How to Calculate GST on Gold: Formula<\/span><\/h2>\n

Gold GST calculation formula:<\/strong> GST = Taxable value \u00d7 3%<\/strong>. Total payable = Taxable value + GST<\/strong>. For a normal finished gold jewellery retail sale, the taxable transaction value generally includes gold value, making charges that form part of the sale, and any other taxable charges, less discounts eligible under GST valuation rules.<\/p>\n

Gold value = Net gold weight (grams) \u00d7 quoted rate per gram.<\/strong> Gold purity affects the quoted rate, not the general 3% GST percentage.<\/p>\n

Example (gold coin):<\/strong> A taxable gold coin value of \u20b950,000 attracts \u20b91,500 GST at 3%, giving a final price of \u20b951,500<\/strong>. This example excludes additional charges.<\/p>\n

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<\/span>Gold GST Calculation With Making Charges: The Important Distinction<\/span><\/h2>\n

For a finished gold jewellery sale to a customer, 3% GST generally applies to the total taxable transaction value including making charges.<\/strong> A separate qualifying jewellery job-work service may instead attract 5% GST on the job-work charges. Merely showing making charges separately on a retail jewellery bill does not turn them into a separate 5% job-work service.<\/p>\n

Example 1: Finished gold jewellery retail sale<\/h3>\n
\n\n\n\n\n\n\n\n\n\n
Particular<\/th>\nAmount<\/th>\n<\/tr>\n<\/thead>\n
Gold value<\/td>\n\u20b980,000<\/td>\n<\/tr>\n
Making charges<\/td>\n\u20b98,000<\/td>\n<\/tr>\n
Taxable jewellery value<\/td>\n\u20b988,000<\/td>\n<\/tr>\n
GST at 3%<\/td>\n\u20b92,640<\/td>\n<\/tr>\n
Final payable<\/strong><\/td>\n\u20b990,640<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Example 2: Qualifying separate jewellery job work<\/h3>\n

Where an eligible job worker processes gold belonging to a principal and the applicable job-work entry covers the service, GST on those services may be 5%.<\/p>\n

\n\n\n\n\n\n\n\n
Particular<\/th>\nAmount<\/th>\n<\/tr>\n<\/thead>\n
Job-work service charges<\/td>\n\u20b98,000<\/td>\n<\/tr>\n
GST at 5%<\/td>\n\u20b9400<\/td>\n<\/tr>\n
Job-work service bill<\/strong><\/td>\n\u20b98,400<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

This second example is not<\/strong> the usual finished-jewellery retail sale. The correct treatment depends on the nature of the contract and applicable GST classification.[\/vc_column_text][vc_empty_space][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n

<\/span>How to Calculate Gold Jewellery GST Step by Step<\/span><\/h2>\n
    \n
  1. Find gold value:<\/strong> Multiply net gold weight by the per-gram rate for the actual purity.<\/li>\n
  2. Add making charges:<\/strong> Use the quoted amount, per-gram charge or percentage of gold value.<\/li>\n
  3. Determine taxable value:<\/strong> Include other charges forming part of the taxable retail supply and subtract only discounts that qualify under GST rules.<\/li>\n
  4. Calculate GST:<\/strong> Multiply taxable value by 3% for the ordinary finished-jewellery sale.<\/li>\n
  5. Calculate final bill:<\/strong> Add GST to the taxable value and account for any separate payment adjustments.<\/li>\n<\/ol>\n

    Worked example: 10 grams of 22K gold<\/h3>\n

    Assume a hypothetical<\/strong> 22K gold rate of \u20b99,000 per gram and making charges of 10% of the gold value.<\/p>\n

    \n\n\n\n\n\n\n\n\n\n
    Bill component<\/th>\nCalculation<\/th>\nAmount<\/th>\n<\/tr>\n<\/thead>\n
    Gold value<\/td>\n10 g \u00d7 \u20b99,000<\/td>\n\u20b990,000<\/td>\n<\/tr>\n
    Making charges<\/td>\n10% \u00d7 \u20b990,000<\/td>\n\u20b99,000<\/td>\n<\/tr>\n
    Taxable jewellery value<\/td>\n\u20b990,000 + \u20b99,000<\/td>\n\u20b999,000<\/td>\n<\/tr>\n
    GST<\/td>\n3% \u00d7 \u20b999,000<\/td>\n\u20b92,970<\/td>\n<\/tr>\n
    Total jewellery price<\/strong><\/td>\n\u20b999,000 + \u20b92,970<\/td>\n\u20b91,01,970<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

    This is an illustrative rate, not a live quotation. Check the jeweller’s final invoice for stones, discounts and other items.<\/p>\n

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    <\/span>GST Calculation for 22K, 24K and 18K Gold<\/span><\/h2>\n

    The general GST rate is 3% regardless of whether the gold is 24K, 22K or 18K.<\/strong> What changes is the value of the metal and, potentially, the jewellery’s making charges.<\/p>\n

    \n\n\n\n\n\n\n\n\n
    Purity<\/th>\nApproximate fineness<\/th>\nGeneral GST rate<\/th>\n<\/tr>\n<\/thead>\n
    24K<\/td>\n99.9%<\/td>\n3%<\/td>\n<\/tr>\n
    22K<\/td>\n91.6%<\/td>\n3%<\/td>\n<\/tr>\n
    18K<\/td>\n75%<\/td>\n3%<\/td>\n<\/tr>\n
    14K<\/td>\n58.5%<\/td>\n3%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

    GST on 10 grams: illustrative comparison<\/h3>\n
    \n\n\n\n\n\n\n\n
    Purity<\/th>\nAssumed rate per gram<\/th>\nGold value<\/th>\nGST at 3%<\/th>\nTotal (no making charges)<\/th>\n<\/tr>\n<\/thead>\n
    24K<\/td>\n\u20b910,000<\/td>\n\u20b91,00,000<\/td>\n\u20b93,000<\/td>\n\u20b91,03,000<\/td>\n<\/tr>\n
    22K<\/td>\n\u20b99,160<\/td>\n\u20b991,600<\/td>\n\u20b92,748<\/td>\n\u20b994,348<\/td>\n<\/tr>\n
    18K<\/td>\n\u20b97,500<\/td>\n\u20b975,000<\/td>\n\u20b92,250<\/td>\n\u20b977,250<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

    These figures use hypothetical gold rates solely to demonstrate the formula; they are not current market prices.<\/p>\n

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    <\/span>How Making Charges Change the Final Gold Bill<\/span><\/h2>\n

    Making charges are commonly quoted as a percentage of gold value, per gram or a fixed fee. For a normal finished-jewellery sale, charges forming part of the taxable transaction value are included before 3% GST is calculated.<\/p>\n

    \n\n\n\n\n\n\n\n
    Method<\/th>\nIllustrative calculation<\/th>\nMaking charges<\/th>\n<\/tr>\n<\/thead>\n
    10% of \u20b91,00,000 gold value<\/td>\n\u20b91,00,000 \u00d7 10%<\/td>\n\u20b910,000<\/td>\n<\/tr>\n
    \u20b9500 per gram for 10 g<\/td>\n\u20b9500 \u00d7 10<\/td>\n\u20b95,000<\/td>\n<\/tr>\n
    Flat amount<\/td>\nFixed quoted fee<\/td>\n\u20b94,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

    Compare the final bill<\/strong> rather than only the per-gram gold rate. Jewellery with lower gold rates but higher making charges may cost more overall.<\/p>\n

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    <\/span>GST on Gold Jewellery, Coins and Bars: Rates and HSN Codes<\/span><\/h2>\n

    The general GST rate for relevant physical gold products is 3%<\/strong>. For an intrastate taxable supply, this is generally CGST 1.5% plus SGST\/UTGST 1.5%. For an interstate taxable supply, IGST is generally 3%.<\/p>\n

    \n\n\n\n\n\n\n\n\n\n
    Product or service<\/th>\nCommon classification<\/th>\nGeneral GST treatment<\/th>\n<\/tr>\n<\/thead>\n
    Gold bullion and bars<\/td>\nHSN 7108<\/td>\n3%<\/td>\n<\/tr>\n
    Gold jewellery<\/td>\nHSN 7113<\/td>\n3%<\/td>\n<\/tr>\n
    Gold coins<\/td>\nHSN 7118, where applicable<\/td>\n3%<\/td>\n<\/tr>\n
    Specified goldsmiths’ wares<\/td>\nHSN 7114, where applicable<\/td>\n3%<\/td>\n<\/tr>\n
    Qualifying jewellery job work<\/td>\nRelevant SAC 9988 entry<\/td>\n5% on eligible service charges<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

    Exact HSN\/SAC treatment depends on the product or service description and applicable notifications. Check our GST rates in India<\/a> reference for wider context.<\/p>\n

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    <\/span>GST Calculation on Gold Coins and Gold Bars<\/span><\/h2>\n

    For a simple physical gold product without other relevant charges, multiply the taxable value by 3%.<\/p>\n

    \n\n\n\n\n\n\n
    Item<\/th>\nTaxable value<\/th>\nGST at 3%<\/th>\nTotal<\/th>\n<\/tr>\n<\/thead>\n
    Gold coin<\/td>\n\u20b925,000<\/td>\n\u20b9750<\/td>\n\u20b925,750<\/td>\n<\/tr>\n
    Gold bar<\/td>\n\u20b92,00,000<\/td>\n\u20b96,000<\/td>\n\u20b92,06,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

    If the seller levies additional charges, assess whether they form part of the taxable value or constitute separately supplied services.<\/p>\n

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    <\/span>How Is GST Calculated When Exchanging Old Gold?<\/span><\/h2>\n

    Paying partly with old jewellery does not automatically eliminate GST on the new jewellery. The transaction’s tax value must be determined under applicable valuation rules, including where consideration is partly non-monetary.<\/p>\n

    Illustration:<\/strong> Suppose the correctly determined taxable transaction value of new jewellery is \u20b91,00,000, GST at 3% is \u20b93,000, and old gold worth \u20b940,000 is accepted towards payment.<\/p>\n

    \n\n\n\n\n\n\n\n\n\n
    Particular<\/th>\nAmount<\/th>\n<\/tr>\n<\/thead>\n
    New jewellery taxable value<\/td>\n\u20b91,00,000<\/td>\n<\/tr>\n
    GST at 3%<\/td>\n\u20b93,000<\/td>\n<\/tr>\n
    Total bill<\/td>\n\u20b91,03,000<\/td>\n<\/tr>\n
    Old gold accepted as payment<\/td>\n\u2212\u20b940,000<\/td>\n<\/tr>\n
    Remaining payable<\/strong><\/td>\n\u20b963,000<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

    This assumes the stated \u20b91,00,000 is the correctly determined GST transaction value. Do not simply deduct the exchange credit from taxable value without examining the relevant contract and GST valuation rules.<\/p>\n

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    <\/span>Common Mistakes in Gold GST Calculation<\/span><\/h2>\n