India is among the largest gold consumers on earth, and gold here carries a weight that is cultural before it is financial — wedding jewellery, festival buying around Dhanteras and Akshaya Tritiya, and gold as intergenerational savings all sit behind the demand figures.
That scale has produced an unusually well-regulated retail market. Since hallmarking became mandatory, the purity question that dogs gold buying in many countries is largely settled at the counter, and the six-digit HUID code on a hallmarked piece is traceable.
GST and hallmarking in India
GST on gold works in two parts, which is where most confusion arises. The metal value is taxed at 3%. Making charges, when itemised separately on the invoice, are taxed at 5%.
The karat makes no difference to the rate — 18K, 22K and 24K ornaments all attract the same 3% on metal value. Karat only changes the price per gram, not the tax percentage.
BIS hallmarking is mandatory for gold jewellery. A hallmarked piece carries the BIS mark, the purity grade and a unique HUID. Insist on an itemised invoice separating metal value, making charges and GST — an unitemised bill makes it impossible to check whether you were charged fairly, and it makes resale harder.
Gram or tola, 22K or 24K
22K is the jewellery standard across India. 24K is bought as coins and bars for investment, and 18K has grown in the diamond-jewellery segment where a harder alloy holds stones more securely.
Both the gram and the tola remain in use. Retail quotes are usually per 10 grams, which is the convention in newspaper and exchange listings, while the tola (11.6638 g) survives in traditional trade. This page shows both so you can cross-check whichever your jeweller quotes.
Making charges typically run between 8% and 25% depending on how intricate the piece is, and machine-made chains sit at the bottom of that range. Since making charges are taxed at 5% and are not recovered on resale, they are worth negotiating hard.
Common questions
How much GST do I pay on gold jewellery?
3% on the metal value plus 5% on the making charges where those are itemised. On a bill where making charges are 10% of the metal value, the blended rate works out slightly above 3%.
What is a HUID number?
A six-character alphanumeric code stamped on hallmarked jewellery that uniquely identifies the piece and can be verified against the BIS database. It is your proof of stated purity.
Is 24K jewellery available?
Rarely, and for good reason — pure gold is too soft to hold a setting or survive daily wear. 24K is sold as coins and bars. If a shop offers 24K jewellery, treat the claim with scepticism and check the hallmark.
Sources
Tax rates and regulations were checked in July 2026 and do change. Verify against the official sources above before acting on them. Corrections to [email protected] — Mohammed Jamil.