India’s new wave of GST reforms in 2025 has brought noticeable changes across several sectors — but one of the most discussed impacts is on gold, silver, and jewellery. Let’s look at how the new tax structure affects precious metals, what the latest rates are, and what it means for buyers and investors.
GST 2.0: What Has Changed
In the September 2025 GST Council meeting, the government simplified the tax structure by merging multiple slabs (0%, 5%, 12%, 18%, 28%) into three key slabs — 5%, 18%, and 40%. However, gold and silver were kept under a special category, and their GST rates remain unchanged.
- Current GST on gold and silver: 3% (1.5% CGST + 1.5% SGST)
- Making charges on jewellery: 5% GST
- Import duty on gold and silver has been reduced from 25% to 20% in the 2025 Union Budget.
While there’s no direct GST rate cut on precious metals, the reduction in import duty and simplified tax structure are likely to bring minor relief in prices for consumers and jewellers.
Current Gold and Silver Rates (as of October 2025)
- 24K Gold: ₹11,852 per gram
- 22K Gold: ₹10,864 per gram
- Silver: Prices have increased by nearly 29% this year
- Gold overall: Up about 39% year-to-date, making it one of the strongest investment assets in 2025
- 24K gold has reached around ₹123,000 per 10 grams, marking new record highs in the Indian market
Impact of GST and Import Duty Changes
1. Slight Price Relief for Consumers
While GST hasn’t changed, the import duty cut reduces the cost for jewellers. If this benefit is passed on, consumers may see a small drop in gold and silver prices.
2. Rise in Jewellery Demand
Despite record-high gold prices, India’s love for gold jewellery continues, especially during festive and wedding seasons. Any small price correction could boost sales significantly.
3. Shift Toward Investment Products
With GST and making charges affecting jewellery costs, many investors are moving toward Gold ETFs and Sovereign Gold Bonds, which provide exposure to gold without the added tax burden or making charges.
Investor Sentiment and Market Trends
Gold has remained a safe-haven asset amid global market uncertainty. The reduction in import duty may also encourage more gold inflows into India, making it easier for retailers to manage inventory. Silver, too, is gaining traction as an industrial and investment metal, with prices rising steadily throughout 2025.
What to Expect Next
Experts suggest that if global gold prices stabilize and domestic taxes remain low, India could see a resurgence in gold jewellery demand toward the end of 2025. Additionally, any further GST reform targeting the jewellery sector could further enhance affordability and push overall sales.
Conclusion
The 2025 GST reform hasn’t altered the GST rate for gold or silver — it remains 3% on metal and 5% on making charges — but the import duty cut from 25% to 20% provides some much-needed relief. Gold prices continue to stay high due to strong demand and global trends, yet India’s fascination with gold remains unshaken.
For buyers, this could be the right time to monitor local prices closely — even a small dip could be an excellent opportunity to invest or make festive purchases.
