Editor’s Note
This article provides a concise overview of the current GST rates applicable to gold in India, distinguishing between 24-carat and 22-carat varieties.
In India, gold is available in 24 carat and 22 carat and below are the applicable GST rates:
GST on 24 carat physical gold is set at 3%. This rate applies to all forms of pure gold—whether in the form of gold bars, coins, or gold jewelry.
GST on 22 carat physical gold is also 3%. This applies to the gold content in 22-carat gold jewelry, bars, or coins.
3% GST is charged for digital gold purchase.
Gold investment schemes like Gold ETFs, Sovereign Gold Bonds, and Gold Mutual Funds are generally not subject to GST on the gold itself. However, GST applies to service charges, management fees, or other charges associated with these schemes. Therefore, investors must ensure that any service fees are accounted for, as they may attract 18% GST.
In the Union Budget 2024, the Finance Minister announced to reduce the custom duty on import of Gold by 9% and the new rates were subsequently notified by the CBIC.
Below example compare gold prices under pre-GST and the GST regime:
