GST on Gold and Diamond Jewellery Explained

Tax is a part of every jewellery price, and it is also a part that many people skim past. A few minutes spent understanding GST on your bill helps you check it and compare quotes.

A note before we start: tax rates and rules can change, and this article is general information, not tax advice. Check the current rates with your jeweller or a tax professional.

The commonly quoted rates

As widely published for gold jewellery in India, GST has been applied at 3 percent on the value of the gold and at 5 percent on making charges, which are treated as a job-work service. These rates have been quoted as unchanged through the 2025 changes to the GST rate structure. On your invoice, the way a jeweller shows these lines can differ, so read the bill itself.

How GST is calculated on a bill

A simplified example shows the order. Suppose a piece has gold worth 50,000 rupees, making charges of 5,000 rupees and diamonds with a stated value. The tax is worked out line by line:

• 3 percent of the gold value.
• 5 percent of the making charge.
• Tax on the stones as shown on the bill, according to how they are classified.

The total payable is the sum of all parts plus tax. The actual figures depend on the piece, so do not treat the example numbers as prices.

What to look for on your invoice

• The gold weight, purity and the rate used.
• The making charge as a separate line.
• Each stone with its value.
• GST shown line by line, with the GSTIN of the seller.
• The HUID for each hallmarked article.

An itemised bill makes errors easy to spot and makes any later exchange or insurance valuation simpler. How to read a jewellery invoice line by line covers each section.

Does GST change the price between shops?

The tax rate on the same item is the same everywhere, so the difference between shops comes from the gold rate used, making charges, stone prices and discounts. It is therefore more useful to compare the pre-tax components than the final total alone.

What about diamonds?

Cut and polished diamonds have their own GST classification, and when set in jewellery the way the bill treats them can depend on how the supply is structured. Ask the jeweller to show how stones are billed. Because rules in this area have been revised from time to time, it is sensible to confirm it for your purchase.

Can you claim the GST back?

GST paid by an ordinary consumer on personal jewellery is not refundable. Businesses that buy for business use may have different options, and that is a question for a chartered accountant.

Why an itemised price is a good sign

A clear breakup is a sign that nothing is being bundled to hide a cost. On our product pages the price is built from live components, with gold, making, stones and tax shown separately. You can see how it works on any diamond ring, and our guide to how a price is calculated explains each part. If you want to go through a real bill with someone, book an appointment.