GST on Gold and Diamond Jewellery: How It Works
Goods and Services Tax (GST) is part of every jewellery purchase in India. Understanding how it works helps you read your bill and compare prices fairly. This guide explains how GST applies to gold jewellery, making charges and diamond jewellery. It is general information, not tax advice, and rates can change, so always check current rates with the Central Board of Indirect Taxes and Customs (CBIC).
GST on gold
At the time of writing, GST on gold jewellery in India is 3%, as published by CBIC. The same rate applies to gold coins and bars, and to silver jewellery.
The GST is calculated on the value of the jewellery, which includes the gold value and, when you buy finished jewellery, the making charges.
GST on making charges
When you buy a finished piece of jewellery from a jeweller, the making charges are part of the price of that piece. In this case, GST is generally applied at the jewellery rate on the full value, including making charges.
The situation can be different if you give your own gold to a jeweller and pay only for the making (job work). Rates for job work can differ from the rate on finished jewellery, so ask your jeweller how GST applies to your specific order.
GST on diamonds and gemstones
When diamonds or gemstones are set into jewellery and sold as a finished piece, GST generally applies at the jewellery rate to the whole piece, including the stones.
Loose diamonds and gemstones, bought on their own, can be taxed at different rates. If you are buying loose stones, ask your jeweller about the GST that applies, and check CBIC's published rates.
Reading it on your bill
A proper jewellery invoice should show GST clearly. Look for:
- the value of the jewellery before tax, broken down into gold value, making charges and stone charges,
- the GST rate applied,
- the GST amount, often split into CGST and SGST for purchases within the same state, or shown as IGST for purchases from another state,
- the total amount payable,
- the jeweller's GSTIN, their GST registration number.
If GST is not shown clearly, ask the jeweller to explain. Read How to Read a Jewellery Invoice in India for a full line-by-line guide.
A note on exchange and buyback
When you exchange or sell jewellery, the GST you paid at purchase is generally not returned. How GST is calculated on a new purchase when you trade in old gold can vary, so ask the jeweller to show you the calculation on your bill. See Gold Buyback and Exchange Policies.
At Tibarumal & Sons Jewellers, Shaikpet, every invoice shows GST clearly, and we are happy to walk you through it before you pay. For the other parts of a jewellery bill, read How to Buy Gold Jewellery in India (2026).
Visit Tibarumal & Sons Jewellers, Shaikpet
Tibarumal & Sons Jewellers
Shop No. 102, 8-1-299/121, RP Business Park, Al Hamra Colony, Shaikpet, Hyderabad 500008
Hours: Monday to Saturday, 11am to 8:30pm
Phone: +91 88855 00805
WhatsApp: Message us on WhatsApp
Instagram: @tibarumalandsons
