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The price of gold in India has been climbing rapidly, and along with rising rates, the tax burden on jewellery buyers has also gone up. While many buyers look only at the market price of gold, the final cost of ornaments depends not just on purity but also on GST and making charges. Here’s a detailed breakdown of how much tax you actually pay when you purchase 18-carat and 22-carat gold jewellery.

Rising Gold Rates in September 2025

According to the Indian Bullion and Jewellers Association (IBJA) data released on September 9, 2025, gold prices saw a sharp surge in just one day.

• 24K gold rose by ₹1,884 to touch ₹1,08,706 per 10 grams.

• 22K gold jumped by ₹1,667, reaching ₹99,975 per 10 grams.

• 18K gold gained ₹1,373, climbing to ₹81,857 per 10 grams.

This sudden rise means jewellery buyers are not only paying more for the base gold price but also shelling out higher taxes and making charges.

GST on Gold Jewellery

When you purchase gold jewellery in India, two taxes apply:

3% GST on the value of gold.

5% GST on the making charges.

Most jewellers charge around 10% of gold’s price as making charges, though this rate can vary depending on design, workmanship, and brand.

Example: Tax on 10 Grams of Jewellery

Let’s take a practical example of buying 10 grams of gold jewellery in both 22K and 18K purity.

For 22K Gold Jewellery (₹99,975 per 10 grams):

• Gold Price: ₹99,975

• Making Charges (10%): ₹9,997

• GST on Gold (3%): ₹2,999

• GST on Making Charges (5%): ₹500

• Total Tax Payable: ₹3,499

For 18K Gold Jewellery (₹81,857 per 10 grams):

• Gold Price: ₹81,857

• Making Charges (10%): ₹8,185

• GST on Gold (3%): ₹2,455

• GST on Making Charges (5%): ₹409

• Total Tax Payable: ₹2,865

So, if a buyer purchases 10 grams each of 22K and 18K jewellery, the combined tax works out to ₹6,364 approximately.

Why Taxes Change Daily

Experts highlight that since gold prices fluctuate daily, the amount of GST also changes every day. On top of that, making charges differ across jewellers. A jeweller who charges higher making fees automatically increases your tax outgo, while a lower making charge reduces the overall bill slightly.

Additional Rules for Buyers

• If you purchase gold worth over ₹2 lakh in cash, you must provide your PAN card details.

• Any jewellery purchase above ₹10 lakh is reported to the Income Tax Department as part of regulatory compliance.

Will GST Reforms Change Gold Prices?

The government recently announced revisions in the GST framework that will make several essential items cheaper from September 22, 2025. However, there is no change in tax rates for gold and silver.

This means:

• Gold jewellery will continue to attract 3% GST on the metal plus 5% GST on making charges.

• Silver ornaments and gold coins/biscuits will also remain under the 3% GST bracket.

Industry analysts suggest that the GST 2.0 reforms may not directly affect bullion demand, as buyers will still pay the same tax rates on precious metals.

Bottom Line

When you buy gold ornaments, the final cost is much higher than just the per-gram rate displayed in the market. GST and making charges together add thousands of rupees to your jewellery bill. For 10 grams of 22K jewellery today, you pay nearly ₹3,500 in taxes alone, while 18K jewellery attracts almost ₹2,900 in taxes.

So before making your next purchase, it’s wise to compare not only gold prices but also making charges across jewellers. Small differences in these components can significantly change the final amount you pay.

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