Will the GST Revamp Have an Impact on the Gold Price?
A BIG YES! and you SHOULD better listen if you’re planning to purchase gold now!
The recent Goods and Services Tax (GST) overhaul in India will have an effect on the price of gold, although the GST rate on gold will not change (at least not yet).
Did you notice what’s changing? Customs duty has been reduced from 15% to 6% by the government, and this has a direct effect of lowering the price of imports. This is good news for you as a consumer since it might reduce the price you pay at the counter.
But don’t relax just yet. There’s more to watch. The GST system is in the process of significant restructuring in India, and there have been discussions of rate rationalisation which are gaining momentum. Any new adjustment in GST on gold, either upward or downward, will affect your ultimate bill.
And what does this mean for you?
Easy: be aware, weigh the alternatives, and when gold is on your shopping list this festive season, timing is everything.
Key GST Updates Affecting Gold Prices (Post-GST Revamp)
As said, these are the key factors that will affect gold prices domestically in the nation after the GST reforms:
- Customs Duty Cut
- Reduced from 15% to 6% in Union Budget 2024–25
- Expected to lower import costs and curb smuggling, potentially leading to cheaper gold over time
- GST Rate on Gold Remains Unchanged
- GST on gold remains at 3% on value and 5% on making charges
- Confirmed in the 56th GST Council Meeting (September 2025)
- Industry Push for Lower GST
- IBJA is advocating to reduce GST on gold from 3% to 1%
- If approved, this could make gold more affordable, especially during festive and wedding seasons
How GST Revamp Could Affect Gold Prices
If GST is Reduced
- A cut from 3% to 1% could lead to significant savings.
- Example: On a ₹5 lakh purchase, buyers could save ₹10,000 in GST, increasing affordability and demand.
If GST is Increased
- Some analysts speculate an increase to 5% may occur to offset revenue losses from the customs duty cut.
- This would raise gold prices for consumers.
Major GST Reforms – What You Need to Know (In Effect September 22, 2025)
Big changes are here! Since September 22, 2025, the system of GST has become far easier. The GST Council has replaced the older multiple tax slabs with two major rates, 5 percent and 18 percent.
Sounds easier, right?
That is not the end, however: luxury and sin products such as tobacco and pan masala will now be subjected to a special 40 percent GST.
The good news is that tax rates on farm equipment, new cars, and electronics have been lowered. That equates to better prices and savings in your pocket!
What It Means for Gold Buyers
Stay Alert to Price Trends
- While GST remains stable, market volatility and currency fluctuations may impact gold prices.
- Monitor announcements from the GST Council, especially ahead of festive seasons.
Explore Investment Alternatives To Invest In GOLD
- Sovereign Gold Bonds (SGBs) have been discontinued for new issues.
- Consider Gold ETFs or digital gold, note, however, digital gold is still subject to 3% GST.
- The World Gold Council is working on launching Wholesale Digital Gold for better access.
Gold Prices And GST: What Buyers Should Know
The GST on gold is yet to be implemented, although the recent reduction in customs duty has already helped reduce the price of gold slightly. Whatever the future of the GST rates on gold may be, it will impact the amount you pay. If or whether you are investing in gold or purchasing it as part of a cultural tradition such as marriage or celebration, you should keep abreast of such changes. You can also consider other options to invest in gold, including Gold ETFs or digital gold, which may be more tax-efficient and easier to purchase in small quantities.
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
Always bold with her opinions, she also never misses the chance to weave in expert voices, keeping things balanced and insightful. In short, Aishwarya brings a fresh, sharp, and fact-driven voice to every story she touches.
