When purchasing gold and silver in India, the final price paid by consumers includes several taxes and additional charges. Understanding these components helps buyers make informed decisions and avoid confusion at the time of purchase.
The Government of India applies Goods and Services Tax (GST) and import duties on precious metals, which directly impact retail prices.
Gold purchases in India attract GST at the following rates:
Making charges vary from jeweller to jeweller and are not regulated. As a result, the total GST paid may differ depending on the jeweller’s pricing structure.
Silver purchases are also subject to GST:
Silver bars, coins, and jewellery all attract the same GST rate. However, additional charges such as dealer margins and transportation costs may influence the final price.
India imports a significant portion of its gold and silver requirements. The government imposes import duties to regulate imports and manage foreign exchange reserves.
Import duties are included in the retail price before GST is applied. Changes in import duty rates can directly affect gold and silver prices in the domestic market.
Making charges refer to the cost of converting raw gold or silver into jewellery. These charges depend on:
Making charges are usually calculated as a percentage of the metal value or as a fixed amount per gram.
The gold and silver rates published online represent base metal prices. The final price paid by customers may be higher due to:
Buyers should always ask for a complete price breakup before purchasing jewellery.
Tax rates and charges mentioned above are subject to change as per government regulations. Prices shown on this website are indicative and intended for informational purposes only. Actual prices may vary depending on jeweller policies and applicable taxes.