09 February 2026
Buying jewellery in India is more than a purchase; it’s an emotion, an investment, and often a legacy. However, understanding the tax structure behind your purchase is just as important as choosing the design. One topic that continues to raise questions among buyers is GST on Gold Jewellery and how it affects the final price.
In this post, we’ll break down GST in simple terms, explain how it impacts gold jewellery costs, and also explore why many modern consumers are turning toward AYAANI’s Lab Grown Diamond Jewellery as a smarter and more transparent alternative.
Designed to eliminate a fragmented tax structure, GST serves as India’s all-in-one indirect tax, replacing the complex web of previous state and central duties. Jewellery, being a high-value consumer good, falls squarely under GST regulations to ensure transparency, standard pricing, and accountability across the industry.
When you buy gold jewellery today, GST is applied at multiple stages, from raw gold procurement to the final retail sale.
As per current GST rules:
This structure applies uniformly across India, whether you buy from a local jeweller or a branded showroom.
The base price of gold is calculated according to the prevailing market rate. On this value:
This ensures nationwide pricing consistency, regardless of state taxes.
Making charges refer to the craftsmanship cost involved in turning raw gold into jewellery.
For intricate designs, making charges can significantly increase the total price. As a result, GST on making charges often becomes a hidden cost that many buyers overlook.
Registered jewellers can claim Input Tax Credit on:
This helps reduce cascading taxes within the supply chain.
While ITC improves operational efficiency for jewellers, the benefit may not always be fully passed on to consumers, especially in traditional gold jewellery with high making charges.
GST rates remain the same for both hallmarked and non-hallmarked jewellery. However:
Always choose hallmarked jewellery to maximise value for money.
Jewellery Type | GST Rate |
|---|---|
Gold Jewellery | 3% + 5% (making) |
Natural Diamond Jewellery | 3% |
Lab Grown Diamond Jewellery | 3% |
Interestingly, lab-grown diamond jewellery attracts the same GST as natural diamonds but is significantly more cost-efficient.
Lab grown diamonds:
This makes them an attractive option for buyers who want brilliance without excessive taxes or markups.
AYAANI is redefining modern luxury with its elegant collection of Lab Grown Diamond Jewellery, designed for conscious, contemporary buyers.
What sets AYAANI apart:
AYAANI’s designs offer the sparkle of traditional diamonds while helping buyers avoid the heavy making charges and complex GST layers often associated with gold jewellery.
Understanding GST on Gold Jewellery empowers you to make informed buying decisions. While gold remains a traditional favourite, its layered tax structure and high making charges can significantly inflate costs.
Modern alternatives like AYAANI’s Lab Grown Diamond Jewellery offer a refreshing balance of beauty, ethics, and financial sense, especially in a GST-regulated market. For today’s buyers, smart luxury isn’t just about shine; it’s about transparency, value, and conscious choices.
1. What is the GST on Gold Jewellery in India?
Gold jewellery attracts 3% GST on gold value and 5% GST on making charges.
2. Is GST refundable on gold jewellery?
GST is not refundable to consumers, but registered jewellers can claim Input Tax Credit.
3. Does GST apply to the old gold exchange?
GST applies only to the net value after adjusting for the exchanged gold.
4. Is GST lower on lab grown diamond jewellery?
Yes, lab grown diamonds attract 3% GST and usually involve lower making charges.
5. Does GST increase jewellery resale value?
No, GST is not recovered during resale, which is why lower upfront taxes matter.
6. Why choose AYAANI over traditional gold jewellery?
AYAANI offers ethical, certified lab grown diamonds with transparent pricing, lower making costs, and modern designs, making them smarter under GST rules.
