GST Rate Cut 2025: No Change for Gold Buyers – What About Making Charges?

The GST Council’s latest rate cuts, effective September 22, 2025, have brought relief across more than 300 products, ranging from SUVs, refrigerators, and washing machines to everyday items like stationery. The timing aligns with Navratri, a festive season when major purchases such as cars and appliances traditionally rise.

However, one big question on buyers’ minds this festive season is: Has the GST on gold or gold jewellery been reduced? Here’s what tax experts and jewellers say.

No Change in GST Rate on Gold

Despite the wide-ranging cuts, the GST on gold remains unchanged at 3%. Experts explain that the gold market is highly sensitive, and any tax reduction could significantly impact prices and demand. For this reason, the GST Council decided not to alter the existing rate.

This means that whether you are purchasing gold bars, coins, or jewellery, you will still need to pay 3% GST on the value of the gold, just as before.

Do You Pay GST on Making Charges Too?

Yes. When you buy gold jewellery, there are two tax components you must account for:

1. 3% GST on the gold value itself

2. 5% GST on making charges

For instance, if you buy a 22-carat gold ring weighing 10 grams, you will pay:

• 3% GST on the gold price of those 10 grams

• 5% GST on the jeweller’s making charges

This dual taxation structure continues under GST 2.0, which became effective on September 22.

What About Digital Gold?

Young investors increasingly prefer digital gold over physical jewellery. However, it is important to note that digital gold also attracts 3% GST. The tax rules for digital purchases mirror those for physical gold, ensuring no tax advantage for switching to digital formats.

Why the Council Kept Gold Out of Cuts

Gold is not just a commodity but also a cultural and investment asset in India. The festive and wedding seasons already drive significant demand, and any tax cut could lead to price volatility. By keeping the GST rate steady at 3%, the Council aims to maintain stability in the bullion market while still delivering tax relief on other consumer products.

Key Takeaways for Buyers

• Gold jewellery continues to attract 3% GST on value and 5% GST on making charges.

• No GST cut on digital gold – buyers must still pay 3%.

• The festive GST rate cuts benefit household products, electronics, and vehicles, but not precious metals.

• Consumers planning to buy gold this Navratri or Diwali should factor these taxes into their budgets.

While the festive GST cuts have made cars, electronics, and daily essentials more affordable, gold buyers will not see any tax relief this season. Both physical and digital gold purchases continue under the existing 3% GST framework, with an additional 5% on making charges for jewellery.

For those eyeing gold as a festive or investment purchase, the costs remain unchanged, making it important to plan your spending wisely.