5min read
Buying gold in India is kind of a tradition, a celebration, and often, an investment. While you are shopping for a wedding or a festival, you will notice one thing: the final gold bill is always more than the advertised rate. Ever wondered why that is? Why is there such a big difference between the displayed gold rate and what you actually end up paying?
Most buyers are left wondering how much tax on gold purchase in India actually applies and what’s included in that polished final price tag. If you have asked yourself these questions while holding your jewellery bill and blinking twice at the total don’t worry. You’re not alone. Let us break it down for you in the simplest way possible.
You walk into a store and see that gold is priced at ₹6,000 per gram. You do the math: 10 grams should cost ₹60,000, right?
Wrong.
Here is what’s really included in that final gold bill:
This means that for a ₹60,000 base value, your actual bill could easily climb to ₹65,000 or more depending on the jeweller’s policies and craftsmanship fees. So, the final amount on your bill will likely be significantly higher than the simple gram-to-gram calculation.
Let’s talk about the biggest tax you will encounter when buying gold GST. Most buyers focus only on the price per gram, but GST quietly stacks up behind the scenes. And yes, it applies to both the gold value and the making charges.
As of 2025, the GST on gold in India is split into:
Let’s learn this with an example:
You buy a gold chain with the following:
Gold value = ₹1,00,000
Making charges = ₹10,000
Now calculate:
3% GST on ₹1,00,000 = ₹3,000
5% GST on ₹10,000 = ₹500
Total tax paid = ₹3,500
That’s ₹3,500 added on top of what you already thought was the price. Surprise! This is why the final invoice always feels heavier than expected. But knowing the math helps you stay in control of your gold purchases.
You may not spot it on your jewellery bill, but a big chunk of tax is already paid before that gold ever reaches your favourite showroom.
India imposes significant import duty on gold, which gets factored into the base rate itself so even the price per gram you see already carries hidden tax weight.
As of now:
So, a total import duty of 15% is already built into the gold rate you see.
This means even before GST and making charges, the base rate of gold already includes taxes paid by the importer and those costs are passed on to you. So, if you have ever wondered how much tax on gold purchase in India truly exists, it is more than just what appears on your invoice.
Next, let’s talk about something just as important making charges and why they can differ so much across jewellers. Every time you buy gold jewellery, you pay making charges the cost of craftsmanship.
These charges usually vary, depending on:
Making charges are usually calculated either as a fixed rate per gram or as a percentage of the gold value, generally ranging between 8% and 20%. And yes, don’t forget you pay 5% GST on making charges, too.
Here is something most buyers don’t know:
When you sell gold, you get paid for the net weight and purity not for the taxes or making charges you paid earlier. So, GST is not refundable and making charges won’t be recovered.
Let’s say you bought gold for ₹71,250 and want to sell it next year. If the market rate stays the same, a gold buyer will likely offer ₹60,000 based on gold weight and purity. You lose ₹11,250 unless prices rise significantly. That is why buying smart = selling smart.
Taxes may be invisible, but they hit your pocket hard when buying gold. What seems like a great deal can quickly turn expensive once GST and making charges kick in. Understanding how much tax on gold purchase in India adds up will help you avoid surprises at checkout.
Every gold buyer and seller should know what goes into their pricing so you can make better decisions. Thinking of selling your gold? Bring your gold to White Gold today and walk out with the best price transparent, trusted, and tax-free on your return.