How to Calculate GST on Gold and Gold Jewellery in India?

CHITTARANJAN PARK, India - March 20, 2025 - PRLog -- New Delhi, India – Understanding GST on Gold Jewellery

The implementation of the Goods and Services Tax (GST) in India has significantly impacted the gold and gold jewellery industry. Whether you are a buyer, seller, or investor, knowing how to calculate GST on gold is crucial to making informed decisions.

GST Rates on Gold and Gold Jewellery

Under the GST regime, the following tax rates are applicable:

• Gold (Raw/Unfinished) – 3% GST
• Gold Jewellery (Finished Product) – 3% GST
• Making Charges on Gold Jewellery – 5% GST

Breakdown of GST Calculation on Gold Jewellery

Let's assume you purchase 20 grams of gold at ₹5,000 per gram. The breakdown is as follows:

• Gold Price: ₹5,000 × 20g = ₹1,00,000
• GST on Gold (3%): ₹1,00,000 × 3% = ₹3,000
• Making Charges (Assumed at ₹2,000 per 10g): ₹4,000
• GST on Making Charges (5%): ₹4,000 × 5% = ₹200
• Total Price: ₹1,07,200 (Gold Price + GST + Making Charges)

Impact of GST on Gold Buyers and Sellers, https://www.corpzo.com/gst-registration

✅ Transparency – GST eliminates multiple state taxes, ensuring uniform pricing.
✅ Higher Costs – Consumers bear a slightly increased cost due to making charges GST.
✅ Better Compliance – Reduces tax evasion and promotes an organized gold market.

Why Choose Corpzo for GST Consultation?

Corpzo offers expert guidance on GST compliance for jewellery businesses, ensuring smooth operations with accurate tax calculations. Our team assists with GST registration, filing, and financial advisory for gold traders and jewellers.

Contact Corpzo Today!

For expert GST assistance on gold jewellery, visit www.corpzo.com or call our experts now!