Looking for expert help with tax on gold you buy, hold or sell? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant. End-to-end filings, notices, and deadline tracking, all in one place.
Key Takeaways
- The gold rate in India starts from the international price (US dollars per troy ounce) converted into rupees per gram. One troy ounce is 31.1034768 grams.
- Customs duty on gold went up on 13 May 2026: 10% basic customs duty plus 5% AIDC, 15% in all (Notifications 15/2026 and 16/2026-Customs). Before that it was 5% + 1% from 24 July 2024.
- GST on gold bars, coins and jewellery is 3%. On ready-made jewellery the 3% applies to the full bill, making charges included.
- 22K gold is 91.6% pure (marked 916) and 18K is 75% (marked 750). Every hallmarked piece must carry a 6-digit HUID, which you can check on the BIS Care app.
- PAN is needed for a bill above Rs 2 lakh, and cash of Rs 2 lakh or more can't be accepted by the jeweller.
How is the gold rate in India calculated? International gold price (US $ per troy ounce) ÷ 31.1034768 x rupee-dollar rate = base price per gram. Add 10% basic customs duty and 5% AIDC on the assessable value, then 3% IGST on the value plus duty. Dealer premiums, local costs and margins sit on top. When you buy jewellery, making charges are added and 3% GST is charged on the total.
Gold rates are checked more often than almost any other price in India, especially in the weeks around Dhanteras and Diwali (8 November 2026) and the wedding season after it. Most rate pages show a number and stop there. This guide explains what goes into that number, what the taxes are in 2026, how to read purity and hallmarks, and what your final jewellery bill should look like.
We don't publish a live rate. The rate moves through the day and differs a little between cities. Use your jeweller's board rate for the day, and use this guide to check whether the bill built on it is right.
How the gold rate is built, step by step
Step-by-Step Guide
From the global gold price to your jeweller's rate board
International price
Gold is traded worldwide in US dollars per troy ounce. One troy ounce is 31.1034768 grams, so divide the ounce price by 31.1034768 for the dollar price per gram.
Rupee conversion
Multiply by the rupee-dollar exchange rate. A weaker rupee raises the gold rate in India even if the global price does not move.
Customs duty
Imported gold pays 10% basic customs duty and 5% AIDC on its assessable value (from 13 May 2026). Gold is exempt from the Social Welfare Surcharge.
IGST on import
3% IGST is charged on the assessable value plus customs duty. Registered dealers can take credit for this IGST; the customs duty is a cost.
Dealer premium and local costs
Banks and bullion dealers add a premium or give a discount depending on demand. Transport, insurance and jeweller margins are added locally, which is why city rates differ slightly.
Rate board and your bill
The jeweller's board rate is per gram for each purity, usually before GST. Your bill adds making charges and then 3% GST on the total.
What customs uses as the "value" of gold
Customs does not simply take the invoice price of imported gold. Under Section 14(2) of the Customs Act, 1962, the CBIC fixes a tariff value for gold every fortnight, and duty is worked out on that value. For example, Notification No. 80/2026-Customs (N.T.) fixed the tariff value of gold bars and coins at US $1,339 per 10 grams from 1 October 2026. This is a customs valuation figure, not a retail rate, but it shows how closely the duty base tracks the world price.
Customs duty on gold in 2026
Tax Rate Chart
Import levies on gold (heading 7108), from 13 May 2026
Customs duty went from 6% to 15%; IGST is extra
Basic Customs Duty (BCD)
Notification 45/2025-Customs, S. No. 196, as amended by 15/2026-Customs
Agriculture Infrastructure and Development Cess (AIDC)
Notification 11/2021-Customs, S. No. 15D, as amended by 16/2026-Customs
Social Welfare Surcharge
Gold (7108) exempt under Notification 11/2018-Customs, Sl. No. 1
IGST
On assessable value plus BCD and AIDC
How the rate has moved:
| Period | BCD | AIDC | Total customs duty | Source |
|---|---|---|---|---|
| 24 July 2024 to 12 May 2026 | 5% | 1% | 6% | Notification 30/2024-Customs (BCD), 32/2024-Customs (AIDC) |
| From 13 May 2026 | 10% | 5% | 15% | Notification 15/2026-Customs (BCD), 16/2026-Customs (AIDC) |
Gold coins (heading 7118) and gold findings such as hooks and clasps (7113) also moved to 10% BCD and 5% AIDC on the same date. The concessional rate for gold imported by exporters under the replenishment scheme (Notification 57/2000-Customs) went from 4.35% to 10% (Notification 17/2026-Customs).
Example: what 15% customs duty plus 3% IGST adds
Assume the assessable value of imported gold works out to Rs 12,000 per gram (an illustrative figure, not a current rate).
| Step | Calculation | Rs per gram |
|---|---|---|
| Assessable value | Given | 12,000 |
| BCD at 10% | 10% of 12,000 | 1,200 |
| AIDC at 5% | 5% of 12,000 | 600 |
| Value for IGST | 12,000 + 1,200 + 600 | 13,800 |
| IGST at 3% | 3% of 13,800 | 414 |
| Landed cost | 13,800 + 414 | 14,214 |
So import levies add 18.45% to the assessable value. Under the 6% duty that applied until 12 May 2026, the same gold would have landed at Rs 13,108.80 (12,000 x 1.06 x 1.03). For how IGST on imports is credited, see our guide on GST on import of goods.
24K, 22K and 18K: purity and price
Carat is the share of pure gold out of 24 parts. Fineness is the same thing in parts per thousand, and it is what the hallmark shows.
| Carat | Gold content | Fineness on hallmark | Common use |
|---|---|---|---|
| 24K | 99.9% (bars and coins can be 99.5%) | 999 or 995 | Bars, coins, investment |
| 22K | 22/24 = 91.6% | 916 | Most traditional jewellery |
| 18K | 18/24 = 75% | 750 | Studded and diamond jewellery |
Rough check on a rate board: the 22K rate should be close to 91.6% of the 24K rate, and the 18K rate close to 75% of it. Jewellers quote their own figures, so expect small differences, but a 22K rate far above 91.6% of the 24K rate is worth asking about.
Hallmark and HUID: how to check purity
Hallmarking is governed by the Hallmarking of Gold Jewellery and Gold Artefacts Order, 2020 issued under the Bureau of Indian Standards Act, 2016. It became mandatory from 23 June 2021 in the first set of districts, and the list has grown in phases.
- Where it applies: the districts listed in the order's annexure. The list was last replaced on 28 April 2026 (S.O. 2117(E)) and now covers 385 districts. In Telangana it includes Hyderabad, Rangareddy and Medchal-Malkajgiri among others.
- What a hallmark shows: three marks. The BIS standard mark, the purity in carat and fineness (for example 22K916), and a 6-digit alphanumeric HUID (Hallmark Unique Identification) that is different for every piece.
- HUID is compulsory: sale of hallmarked jewellery without a HUID is prohibited from 1 April 2023.
- Not covered: articles weighing less than 2 grams, items made for export to a buyer's specification, gold thread, and gold bullion in the form of bars, plates, coins and similar shapes.
- How to verify: open the BIS Care app and use Verify HUID. It shows the jeweller's registration details and the hallmarking centre.
- If you doubt the purity: you can get the piece tested at any BIS-recognised Assaying and Hallmarking Centre for a fee, and take a lower-than-marked result up with the jeweller and BIS.
- Hallmarking fee: from 14 September 2026, the fee jewellers pay a hallmarking centre is Rs 75 per gold article (minimum Rs 200 per consignment), plus taxes (BIS Hallmarking Amendment Regulations, 2026). This is built into the jeweller's price; you don't pay it separately.
From rate board to final bill: making charges and GST
GST on gold is 3% (1.5% CGST + 1.5% SGST, or 3% IGST), under Schedule IV of Notification No. 9/2025-Central Tax (Rate): S. No. 5 for gold (7108), S. No. 10 for jewellery (7113) and S. No. 15 for coins (7118).
For ready-made jewellery, the CBIC FAQ on the Gems and Jewellery sector says GST is 3% on the total transaction value, whether the making charge is shown separately or not. It is not 3% on the gold plus 5% on making charges.
Example: a 20 gram 22K necklace
Assume the jeweller's 22K rate is Rs 13,000 per gram and making charges are 10% of the gold value (both illustrative).
| Item | Calculation | Amount (Rs) |
|---|---|---|
| Gold value | 20 g x 13,000 | 2,60,000 |
| Making charges | 10% of 2,60,000 | 26,000 |
| Taxable value | 2,60,000 + 26,000 | 2,86,000 |
| GST at 3% | 3% of 2,86,000 | 8,580 |
| Total bill | 2,94,580 |
The bill is above Rs 2 lakh, so the jeweller will ask for your PAN, and no more than Rs 1,99,999 of it can be paid in cash. More on that below.
Exchanging old gold? GST is charged on the full value of the new jewellery. The value of the old gold you hand over is adjusted against the payment, not against the taxable value. For the full GST picture, including HSN codes, job work and the 5% rate on goldsmith labour, see our guide to GST on gold and jewellery.
PAN and cash rules when you buy gold
The Income-tax Act, 2025 and the Income-tax Rules, 2026 apply from 1 April 2026. Old 1961 Act numbers are in brackets.
| Rule | What it says |
|---|---|
| PAN (Rule 159, Income-tax Rules, 2026; old Rule 114B) | PAN is required for a purchase of goods above Rs 2,00,000 per transaction. Without PAN, an individual gives a declaration in Form No. 97. |
| Cash limit (Section 186, Income-tax Act, 2025; old Section 269ST) | No person can receive Rs 2 lakh or more in cash from one person in a day, for one transaction, or for transactions relating to one event or occasion. |
| Penalty (Section 451; old Section 271DA) | Equal to the cash received, imposed on the jeweller. |
Splitting a bill into two parts doesn't get around either rule. There is also no legal limit on how much gold you can hold if it comes from explained sources. Our guide on how much gold you can keep at home covers the 500 g, 250 g and 100 g search guideline.
When you sell: tax on the gain
The gold rate on the day you sell decides your capital gain.
| Held for | Type of gain | Tax |
|---|---|---|
| 24 months or less | Short-term | At your slab rate |
| More than 24 months | Long-term | 12.5%, without indexation (Section 197, Income-tax Act, 2025; old Section 112) |
Exchanging old jewellery for new is also a sale of the old gold. For worked examples, inherited gold and the 1 April 2001 value, read our guide on income tax on sale of gold and jewellery.
Sovereign Gold Bonds: from tax year 2026-27, the capital gains exemption on redemption applies only if you subscribed at the original issue and held the bond until maturity (Section 70(1)(x), as amended by the Finance Act, 2026). Bonds bought on the stock exchange don't get it. Details are in our SGB taxation guide.
Common claims on gold rate pages, corrected
| Claim you may see | What the law says |
|---|---|
| "3% GST on gold and 5% GST on making charges" | Wrong for ready-made jewellery. GST is 3% on the total value, making charges included (CBIC Gems and Jewellery FAQ). 5% is only for job work charges billed by a job worker. |
| "Import duty on gold is 6%" | Out of date. It has been 15% (10% BCD + 5% AIDC) since 13 May 2026. |
| "RBI must back every rupee with gold" | Not so. Section 33(2) of the RBI Act, 1934 sets a minimum reserve: gold coin, bullion and foreign securities of at least Rs 200 crore, of which gold at least Rs 115 crore. |
| "Since GST is uniform, gold costs the same in every city" | GST and customs duty are uniform, but board rates still differ slightly because of transport, insurance and local margins. |
| "All gold must be hallmarked" | Mandatory hallmarking covers jewellery and artefacts in the 385 notified districts. Bullion, coins and articles under 2 grams are outside the order. |
How Tax Garden helps
When you sell or exchange gold, we work out the capital gain, including the 1 April 2001 value for old family jewellery, and report it in the right ITR schedule through our ITR filing service. If you run a jewellery shop, our guide to income tax for jewellers and goldsmiths covers the business side, and we handle monthly GST returns too.
Sources: Notification No. 45/2025-Customs dated 24 October 2025 (Table I, S. Nos. 192 to 203) as amended by Notification No. 15/2026-Customs dated 12 May 2026; Notification No. 11/2021-Customs (AIDC) as amended by Notification Nos. 3/2023, 32/2024 and 16/2026-Customs; Notification No. 11/2018-Customs (SWS); Notification No. 17/2026-Customs; Notification No. 30/2024-Customs; Notification No. 80/2026-Customs (N.T.) dated 30 September 2026 (tariff value); Notification No. 9/2025-Central Tax (Rate); CBIC sectoral FAQ on Gems and Jewellery; Hallmarking of Gold Jewellery and Gold Artefacts Order, 2020 (S.O. 205(E)) and Second Amendment Order, 2026 (S.O. 2117(E) dated 28 April 2026); Bureau of Indian Standards (Hallmarking) Amendment Regulations, 2026; BIS hallmarking releases on the Press Information Bureau (4 March 2023, 30 March 2023, 28 October 2024); Reserve Bank of India Act, 1934, Section 33; Income-tax Act, 2025 as amended by the Finance Act, 2026 (Sections 70, 186, 197 and 451); Income-tax Rules, 2026 (Rule 159). Official sites: cbic.gov.in, bis.gov.in, pib.gov.in, rbi.org.in, incometaxindia.gov.in, indiabudget.gov.in. Position as of 13 October 2026. This article is general information and not a substitute for advice on your own facts.
Frequently Asked Questions
Why does the gold rate change every day?
India imports most of its gold, so the domestic rate follows the international price, which is quoted in US dollars per troy ounce, and the rupee-dollar exchange rate. Both move daily. On top of that come customs duty (10% basic customs duty plus 5% AIDC since 13 May 2026) and 3% GST, which do not change daily but are part of the final price.
What is the customs duty on gold in India in 2026?
From 13 May 2026, gold bars and other gold under heading 7108 attract 10% basic customs duty (Notification 15/2026-Customs, amending S. No. 196 of Notification 45/2025-Customs) and 5% Agriculture Infrastructure and Development Cess (Notification 16/2026-Customs, S. No. 15D of Notification 11/2021-Customs). That is 15% in all. Gold is exempt from the Social Welfare Surcharge. IGST at 3% is charged on top, on the value plus duty, so the total levy works out to 18.45% of the assessable value.
What is the difference between 24K, 22K and 18K gold?
Carat measures how much of the metal is pure gold out of 24 parts. 24K is pure gold (fineness 999 or 995 for bars and coins). 22K is 22 parts in 24, about 91.6% gold, marked 916. 18K is 18 parts in 24, or 75% gold, marked 750. Jewellery is usually 22K or 18K because pure gold is too soft to hold shape.
Is GST on gold 3% or 5% on making charges?
For ready-made jewellery bought from a jeweller, GST is 3% on the total value, including making charges, whether or not the making charge is shown separately (CBIC FAQ on the Gems and Jewellery sector). The 5% rate applies only to job work charges billed by a job worker, for example when you give your own gold to a goldsmith to make an ornament.
Is the gold rate the same in every city?
GST and customs duty are the same everywhere in India, but the rate on a jeweller's board can differ slightly between cities. Transport, insurance, local dealer margins and the rate fixed by local jewellers' associations all add small differences.
How do I check if my gold jewellery is genuine?
Look for three marks: the BIS standard mark, the purity in carat and fineness (such as 22K916), and a 6-digit alphanumeric HUID. Enter the HUID in the Verify HUID feature of the BIS Care app to see details of the jeweller and the hallmarking centre. You can also get any piece tested at a BIS-recognised assaying and hallmarking centre for a fee.
Is hallmarking mandatory everywhere in India?
Hallmarking is mandatory for gold jewellery and artefacts sold in the districts listed in the Hallmarking of Gold Jewellery and Gold Artefacts Order, 2020. The list was last replaced on 28 April 2026 (S.O. 2117(E)) and now covers 385 districts, including Hyderabad, Rangareddy and Medchal-Malkajgiri in Telangana. Articles under 2 grams and gold bullion are outside the order.
Do I need PAN to buy gold?
Yes, if the bill is more than Rs 2 lakh. Rule 159 of the Income-tax Rules, 2026 requires PAN for a sale or purchase of goods above Rs 2,00,000 per transaction. A person without PAN gives a declaration in Form No. 97. Separately, the jeweller cannot accept Rs 2 lakh or more in cash from you for one transaction, in one day or for one occasion (Section 186, Income-tax Act, 2025).
Does RBI need gold to back every rupee note?
No. Under Section 33(2) of the Reserve Bank of India Act, 1934, the RBI must hold gold coin, gold bullion and foreign securities worth at least Rs 200 crore, of which gold must be at least Rs 115 crore. This is a minimum reserve, not a rule that every rupee in circulation is backed by gold.
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