Gold isn’t just a metal in India—it’s an emotion, an investment, and a part of our culture.
If you’re planning to buy 24 carat gold, knowing about the GST (Goods and Services Tax) rate is absolutely essential.
Let’s break it down clearly, minus the heavy jargon!
What is 24 Carat Gold?
24 carat gold is the purest form of gold, containing 99.9% gold content.
Unlike 22 carat or 18 carat jewelry, which mixes other metals for strength, 24 carat gold is too soft for intricate jewelry and is mostly sold as:
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Gold coins
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Gold bars
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Gold bullion
Because of its high purity, 24 carat gold is more valuable per gram and is a preferred option for serious investors.
GST Rate on 24 Carat Gold
When the Indian government introduced GST in 2017, the taxation system on gold became much simpler. Here’s what applies:
| Component | GST Rate |
|---|---|
| Purchase of 24 Carat Gold (coins/bars) | 3% |
| Making Charges for Jewelry | 5% |
Note: Making charges apply only if you’re buying jewelry, not raw gold coins or bars.
Example:
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Price of 24 carat gold bar = ₹1,00,000
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GST @3% = ₹3,000
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Final price = ₹1,03,000
Simple, right? Yet often overlooked by first-time buyers!
Why GST Matters for Gold Investors
Understanding GST isn’t just about legal compliance—it impacts your money and future returns.
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Acquisition Cost: GST becomes a part of your gold’s cost basis.
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Resale Reality: Buyers typically pay you based on market value, not including the GST you originally paid.
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Comparison Shopping: Digital gold platforms and banks might display prices differently—always check if GST is included.
In short: knowing your GST obligations helps you plan smarter investments.
How GST Changed Gold Buying in India
Before GST, buying gold was taxed differently across states with VAT, excise, and other duties.
With GST:
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The tax rate is standardized across India.
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Purchasing processes became more transparent.
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Informal (unregulated) transactions reduced.
Today, most buyers prefer BIS-certified jewelers and platforms that clearly display GST charges.
Practical Tips for Buying 24 Carat Gold in the GST Era
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Request a Tax Invoice: Always ask for a detailed bill separating gold value and GST.
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Check for Hallmark Certification: To ensure authenticity and quality.
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Understand Making Charges: Especially relevant if you’re shifting to gold jewelry instead of bullion.
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Stay Updated: Global events like inflation, wars, or economic crises heavily impact gold rates.
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Explore Digital Gold: Platforms like Paytm, PhonePe, and Google Pay offer pure 24K digital gold, but ensure they comply with tax norms.
Are Future GST Changes Expected?
Many industry bodies argue that a lower GST rate could boost formal gold buying and increase transparency even further.
Although no formal rate cuts have been announced yet, staying informed can help you time your investments more profitably.
Final Thoughts
Buying gold today is not just about emotional connection—it’s also a financial decision that requires smart understanding.
Knowing how GST affects your purchase will save you money, protect your investment, and make you a smarter buyer.
Remember: When it comes to wealth, knowledge is your real gold
FAQs About 24 Carat Gold GST
Q. Does GST apply to second-hand gold sales?
A. No, personal resales (like selling your old gold jewelry) are typically GST-free.
Q. Is GST refundable for exporters?
A. Yes, subject to certain rules, GST on gold exports can be claimed as a refund.
Q. How does GST apply to digital gold?
A. Buying digital gold attracts the same 3% GST rate as physical gold purchases