A Special Rate, Not the Standard One
Most goods and services in India attract GST at 5%, 12%, 18%, or 28%. Gold and gold jewellery are a specific carve-out at a flat 3% — recognising that gold is both a consumer good and a store of value, and a higher rate would push buyers toward informal, untaxed sales instead. This 3% applies to the combined value of the gold itself plus making charges, not just the metal.
How It's Actually Calculated
The standard sequence a jeweller follows: metal cost (weight × purity × today's rate) + making charges = subtotal, then 3% GST on that subtotal. Some jewellers separately charge a small additional GST specifically on making charges in certain billing structures, but the flat-3%-on-everything approach is the most common and the one our Jewellery Calculator uses by default.
It Doesn't Apply Everywhere
GST is an Indian tax — it has no equivalent when you're looking at gold prices for the USA, UK, or any other country on this site, which is why our calculators and price pages automatically hide the GST line the moment you switch to a non-India country. Sovereign Gold Bonds are also GST-free, since you're buying a bond, not physical gold, which is one of the reasons they end up cheaper per gram than an equivalent physical purchase.
