GST on Gold Jewellery: Rates, Making Charges and HSN Code Explained

• GST on gold jewellery in India is 3% on the gold value and an additional 5% on making charges.

• Jewellers use the HSN code 7113 for gold jewellery, GST filing and billing purposes.

• Always ask for an itemised bill that clearly separates the gold value, making charges, and GST applied to each item

Every time you buy gold jewellery in India, you pay more than just the gold price. GST is added on top, and it applies in two parts: one on the gold itself and another on the making charges. If you have ever looked at a jewellery bill and wondered why the final amount is significantly higher than the day’s gold rate, understanding these charges becomes important. Whether you are purchasing jewellery from a local jeweller, investing in coins and bars, or exploring digital gold, knowing how GST is calculated can help you make more informed gold investment decisions.

The gold jewellery GST rate in India is 3% of the value of the gold used in the piece. This is the same rate that applies to gold bars, coins, and biscuits. It does not matter whether you are buying a simple chain or an elaborate bridal set. The GST rate on gold jewellery remains flat at 3% on the gold component.

This 3% is applied to the base gold price, which is calculated using the weight of gold in the piece and the current market rate. So the heavier the jewellery, the higher the GST amount in absolute terms.

This is the part many buyers miss. Apart from the 3% GST on gold, there is an additional GST on gold jewellery-making charges. The making charges GST rate is 5%, applied separately to whatever the jeweller charges for crafting the piece.

So your final jewellery bill actually has two GST components.

The GST on gold ornaments, making charges vary in absolute amount depending on the jeweller and the complexity of the design. A plain chain will have lower making charges and therefore lower GST on that component. A bridal necklace that is intricate will incur higher making charges, along with a correspondingly higher 5% GST on those charges.

Here is how a typical jewellery bill breaks down.

This breakdown shows clearly why the final bill is significantly higher than just the gold rate on that day.

HSN stands for Harmonised System of Nomenclature. It is a standardised coding system used to classify goods for GST purposes. Every product sold in India has an HSN code, and gold jewellery is no different.

The HSN code for gold jewellery is 7113. This covers all articles of jewellery and parts made from precious metals, including gold. Your GST invoice shows the HSN code, which jewellers use when filing their GST returns.

Here is a quick reference for related HSN codes.

The gold HSN code and GST rate together help buyers verify that the invoice they receive from a jeweller is correctly structured and compliant.

Also Read: Digital Gold ETF Explained: What You Need to Know

Yes. GST on gold ornaments follows the exact same structure as that of jewellery. Whether you are buying a necklace, bangle, earring, or any other wearable gold piece, the jewellery GST rate of 3% on the gold value and 5% on making charges applies uniformly. There is no separate or lower rate for ornaments.

1. Itemised Breakdown

Always ask your jeweller for a bill that clearly separates the gold value, making charges, GST on gold, and GST on making charges. A good jeweller will provide this without hesitation.

2. HSN Code on the Invoice

Check that the HSN code in gold jewellery on your invoice reads 7113. This confirms that the billing is correctly categorised under GST rules.

3. GST Registration Number

Your jeweller's GSTIN should appear on the bill. This confirms that they are a registered seller and that the GST you pay is going into the system correctly.

4. Correct GST Rates

Verify that the GST on gold jewellery in your bill is 3% on the gold value and 5% on making charges. Any deviation from this rate is worth questioning.

For individual buyers, no. The GST paid on gold jewellery is a final cost and cannot be claimed back. However, registered businesses that buy gold jewellery for legitimate business purposes may be able to claim input tax credit depending on their specific situation. For personal purchases, the GST is simply part of your total cost of buying gold.

Understanding GST on gold jewellery helps you read your bill correctly and plan your purchase budget accurately. The gold jewellery GST rate is 3% on gold and 5% on making charges, and the HSN code for gold jewellery is 7113. Always ask for a detailed invoice and verify these numbers before paying. You can also explore certified gold products through the Aditya Birla Capital platform, powered by MMTC-PAMP. Visit their website or download the ABC app to learn more.

Also Read: Key Benefits of Investing in Digital Gold in India