At purchase: GST of 3%
Buying gold in India attracts 3% GST, whether it is a coin from a jeweller or a gram of digital gold. It is charged once, on the purchase, and it is a tax rather than a fee: nobody on the platform keeps it. On Ticgetz it is shown as its own line at checkout, so the rate you compare against a bullion quote stays clean.
GST rate on gold jewellery and making charges
The 3% applies to the gold itself, in any form. Jewellery adds a second line, making charges, and how GST applies to it is less settled than most rate tables suggest:
| What you pay for | GST | How settled |
|---|---|---|
| Gold: digital gold, coins, bars, the metal in jewellery | 3% | Settled |
| Making charges on finished jewellery, billed as a separate line | Usually 5% in practice; some read the 3% as covering the whole piece | Not clarified by CBIC |
| A goldsmith's job work on gold you supply | 5% on the job-work charge, not on your gold | Settled for registered goldsmiths |
Digital gold and coins carry no making charges, so the 3% is the only GST you pay. Today's digital gold price shows the rate with and without it. That is one reason the buying cost of a coin is easier to compare than a piece of jewellery: on jewellery, ask for the gold value, the making charge and the GST on each as separate lines.
At sale: capital gains
Profit on gold is a capital gain. The July 2024 rules reset the holding-period boundary for gold and other non-financial assets to 24 months, and changed the long-term treatment to a flat rate without indexation:
| Held for | Treated as | Taxed at |
|---|---|---|
| Up to 24 months | Short-term capital gain | Added to your income, taxed at your slab rate |
| More than 24 months | Long-term capital gain | 12.5% flat, without indexation benefit |
Your cost of acquisition is what you paid for the metal. Whether the 3% GST you paid can be added to that cost is a point on which practice varies, so ask your CA and keep the invoice either way. If you bought on a SIP, each instalment has its own date and its own cost.
A worked example
| Line | Amount |
|---|---|
| Metal bought | ₹1,00,000 |
| Sold, 30 months later | ₹1,30,000 |
| Long-term gain | ₹30,000 |
| Tax at 12.5%, before cess | ₹3,750 |
How other forms of gold are taxed
| Long-term after | Long-term rate | Worth knowing | |
|---|---|---|---|
| Digital gold, coins, jewellery | 24 months | 12.5% | 3% GST on purchase; making charges on jewellery |
| Listed gold ETF | 12 months | 12.5% | No 3% GST on buying units |
| Sovereign Gold Bond | Held to maturity | Exempt for original subscribers | From April 2026, reports say the exemption no longer covers secondary-market buyers |
In between: KYC and the annual threshold
You can start buying with nothing more than a verified mobile number. KYC becomes mandatory once your purchases cross the non-KYC ceiling for a financial year: ₹1.8 lakh on Ticgetz. Nothing is confiscated at the line; buying is simply paused until KYC is complete, and your holding sits untouched in the meantime.
- Step 1
PAN
Needed for KYC and for larger transactions generally. Have it before you approach the threshold, not after.
- Step 2
Aadhaar-based verification
The usual route, completed in the app in a few minutes.
- Step 3
Bank account in your own name
Sale proceeds are paid only to an account matching your KYC. Third-party payouts are deliberately not possible.
What to keep, and for how long
- Every purchase invoice: it carries your cost of acquisition and the GST paid.
- Every sale statement: date and amount, which together decide short- versus long-term. Selling in the app produces one automatically.
- Delivery paperwork, if you ever redeem coins; it proves the chain from grams to metal.
- Keep all of it for at least as long as the assessment can be reopened for that year. Your CA will give you the current window.
Everything on this page is general information about Indian tax rules as they stood when it was last updated. The Income-tax Act, 2025 replaced the old Act from 1 April 2026, so section numbers you see elsewhere may be out of date. It is not tax advice, and it cannot account for your income, your other capital gains, or a change in the law. For anything material, talk to a chartered accountant.
Questions people ask
What is the GST rate on gold?
3% on the gold itself, whether it is digital gold, a coin, a bar or the metal in jewellery. Making charges on jewellery are billed separately, usually at 5% in practice, and a goldsmith's job work on your own gold attracts 5% on the charge.
Is there GST when I sell digital gold back?
No. GST applies on purchase. Selling your holding back to the platform does not attract GST from you.
How long must I hold gold for long-term capital gains?
More than 24 months, for transfers after 23 July 2024. Long-term gains are then taxed at a flat 12.5% without indexation; shorter holdings are taxed at your slab rate.
Do I need a PAN to buy digital gold?
Not for small purchases on Ticgetz, where a verified mobile number is enough to start. PAN is required for KYC, which becomes mandatory once your purchases cross ₹1.8 lakh in a financial year.
Does buying gold have to be declared in my ITR?
Buying is not itself a taxable event to declare, but gains on sale are, and assets can need disclosure in the schedule for assets and liabilities above certain income levels. Check with your CA.
Is digital gold taxed the same as physical gold?
Yes, broadly. Both attract 3% GST on purchase, and gains are long-term after 24 months and taxed at 12.5% without indexation. Shorter holdings are taxed at your slab rate.
Is gifting digital gold taxable?
It can be for the person receiving it. Gifts from specified relatives or on your marriage are exempt. From anyone else, bullion and jewellery become taxable once the year's total passes ₹50,000.
Sources
- GST on gold: rates, making charges and calculation · Razorpay
- GST rate for gold: jewellery, coins and making charges · IndiaFilings
- GST goods and services rates · Central Board of Indirect Taxes and Customs
- Tax treatment of gifts received by an individual or HUF · Income Tax Department
- Budget 2026 changes SGB tax rules · CA Alley
- Sovereign Gold Bonds · Reserve Bank of India
From the Ticgetz Gold team, drafted with AI assistance and checked against the sources above on 3 November 2026. Ticgetz sells digital gold, so weigh what we say accordingly. This is general information about how digital gold works in India, not investment or tax advice, and rules change. Rates quoted anywhere on this site are live market rates and are not a forecast.
