How much GST will you pay on gold, silver jewellery after GST 2.0 reforms?

How much GST will you pay on gold, silver jewellery after GST 2.0 reforms?

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India’s long-awaited GST 2.0 reforms, which came into effect from 22 September 2025, have simplified the GST rate structure — but when it comes to precious metals like gold and silver jewellery, not much has changed after GST 2.0 on the tax front. In this post, we break down exactly how much GST you will pay on gold and silver jewellery after the reforms, why the rate remains the same, and how it affects your purchase.

How much GST will you pay on gold, silver jewellery after GST 2.0 reforms?

What Is GST 2.0 — And What Changed in 2025 after GST 2.0?

Earlier, India’s GST system operated with four tax slabs — 5%, 12%, 18%, and 28%. Under GST 2.0, these slabs have been rationalized, and the government now primarily uses two main rates: 5% and 18%, with a special 40% slab for certain luxury or sin items. Angel One+2Jewelbuzz+2
However, in spite of this sweeping reform, the GST Council opted not to modify the GST rate on gold and silver jewellery — these remain on a special, lower structure. Upstox – Online Stock and Share Trading+1

GST on Gold and Silver Jewellery After after GST 2.0 Reforms: What’s the Rate?

Here’s the breakdown of how GST applies to gold and silver jewellery after GST 2.0:

So, the structure remains the same as before, and the GST Council did not raise the GST on these precious metals even under the new tax regime. Angel One+1

Why Has the GST Rate for Gold & Silver Stayed Unchanged after after GST 2.0?

  1. Cultural and Economic Significance
    Gold and silver hold a special place in Indian households — they are not just investments, but also deeply embedded in traditions (weddings, festivals). Lowering or disrupting the rate could significantly affect demand. Analysts note that keeping the GST at 3% helps maintain stability in this market. mint+1

  2. Protecting Affordability
    With massive demand during festive seasons, a sudden increase in GST could dampen consumer sentiment. Maintaining the status quo provides clarity and avoids surprise tax burden for buyers. Bajaj FinServ Markets

  3. No Disruption to the Bullion Trade
    Since these reforms were more focused on simplifying GST compliance (e-invoicing, reconciliations, etc.) rather than raising precious metal taxes, the Council likely saw no compelling reason to change the gold/silver rate. BasuNivesh

How to Calculate GST on Your Jewellery Purchase

To make this more concrete, let’s look at a practical example:

This shows how GST adds a meaningful premium to your jewellery purchase — but it hasn’t been made more expensive by the 2025 reforms.

GST on Other Forms of Gold & Silver

It’s also helpful to know how GST applies in other scenarios, not just jewellery:

  • Gold & silver coins / bars: These continue to attract 3% GST on their entire value. BasuNivesh+1

  • Digital gold / digital silver: Even when you buy them via apps or wallets, 3% GST applies on the transaction value. BasuNivesh

  • Gold ETFs / Silver ETFs / Gold Mutual Funds: These are exempt from GST on purchase. BasuNivesh

  • Sovereign Gold Bonds (SGBs): Also GST-free when bought, making them a very tax-efficient way to invest. BasuNivesh

  • Old jewellery exchange: If you exchange your old gold jewellery for a new piece, GST is charged only on the value addition (i.e., new gold value minus the value of the old gold being taken back), plus the GST on making charges of the new jewellery. BasuNiveshalso read: https://gstandtax.com/how-gst-reforms-and-tax-cuts-drove-shoppers/How GST Reforms and Tax Cuts Drove Shoppers to Splurge on Items from Cars to Kitchenware

What This Means for Buyers

  1. No Tax “Bonus” for GST 2.0:
    Despite the broader reforms, you won’t save GST on gold or silver jewellery — the rate remains the same. But at least there’s no hike either.

  2. Be Clear on Billing:
    Ask for a clear invoice that separately shows the gold value, making charges, and GST. This helps you understand exactly what you’re paying for.

  3. Consider Alternatives to Physical Jewellery:
    If you’re buying precious metals for investment (rather than wearing), SGBs or ETFs might be more cost-effective — because they avoid GST on purchase. BasuNivesh+1

  4. Negotiate Making Charges Carefully:
    Since GST on making is 5%, reducing making charges (if the jeweller is open) can also cut your tax burden somewhat.

Bottom Line

  • Under GST 2.0 reforms (effective from September 2025), GST on gold and silver jewellery remains unchanged.

  • You continue to pay 3% on the metal value and 5% on making charges. Jewelbuzz+2Angel One+2

  • The reforms focused more on compliance and simplification rather than changing these specific tax rates. BasuNivesh

  • For buyers, transparency in billing is key. And if you’re investing rather than adorning, digital or paper-based instruments like ETFs or SGBs could be more tax-efficient.

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