GST on Gold Jewellery: Prime Minister Narendra Modi’s fresh comments on GST rate changes have set high expectations. If the government brings these reforms, it will become one of the biggest changes since GST started on July 1, 2017. The focus is now on cutting rates on some important services like healthcare and life insurance and also removing the compensation cess. The GST Council is meeting on August 20-21 to take these talks further.
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But the big question is about gold. People are waiting to see if jewellery will get any tax relief. Experts believe that gold may not be included in this round of changes. Prabhat Ranjan, senior director at Nexdigm, said gold has a special tax rate and it is not part of the current rationalisation. He explained, “Therefore, no immediate or indirect impact is anticipated on gold pricing. The focus remains on boosting consumption and tax efficiency across other categories” reported Fortune India.
Even so, the Prime Minister’s words have given hope to jewellers. Piyush Gupta, director at PP Jewellers by Pawan Gupta, said, “If the rates are revised, it will encourage more customers to buy jewellery.”
At present, buyers pay 3% GST on gold jewellery plus another 5% on making charges. For many families, jewellery is a big purchase, often linked to weddings, life events or savings. Designer Mira Gulati of Mirari explained how even a small cut in tax feels big to buyers. She said, “This (the rates) has been the practice since GST first came in. Over time, people have come to accept GST as part of their purchases, but jewellery is never a small buy; it’s often for weddings, milestones, or as an investment. That’s why even a small change in tax feels important. It can make customers feel more at ease with their decision and make the overall experience of buying jewellery more satisfying.”
Gold prices depend mainly on international markets, but GST directly adds to the final bill. Piyush Gupta gave a clear example: “On jewellery worth ₹5 lakh, a 3% GST means an additional ₹15,000. If the rate is reduced, buyers will save directly on this tax amount. For example, if GST is lowered by 1% (that is, from 3% to 2%), a customer will save around ₹5,000 on a purchase of ₹5 lakh.”
Even though ₹5,000 may look small compared to the total cost, it matters to customers. Gulati pointed out that it also builds positivity. “This positivity can encourage more purchases during the festive season. For jewellers, it also builds trust that the government is supporting industries like theirs and making aspirational products more reachable for people.”
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For now, jewellers and buyers are watching closely. Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL), explained why markets are calm.
He said, “The immediate impact may be limited because no formal GST Council decision has yet been announced. Markets usually wait for official notifications before reacting. If implemented, a reduction will boost demand in the festive and wedding season, especially at a time when gold is at record highs. Without execution, the speech alone may not influence jewellery prices or consumer buying sentiment significantly.”
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