How GST & import duties affect the gold or silver jewellery you buy?
Edited By Tarun Mishra
Published: Sep 29, 2025, 15:18 IST | Updated: Sep 29, 2025, 15:18 IST
Taxes and duties make up a significant portion of the final price, and understanding these charges can help buyers make smarter decisions, especially during the festive season when demand peaks.Untitled Summary
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1. Basic Customs Duty (BCD)
- Gold: 10 per cent
- Silver: 10 per cent
India imports most of its gold and silver. When these metals enter the country, the government levies a Basic Customs Duty on their value.
For example, if the international price of gold is Rs 50,000 per 10 grams, the BCD alone adds Rs 2. Agriculture Infrastructure and Development Cess (AIDC)5,000 to the cost.
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2. Agriculture Infrastructure and Development Cess (AIDC)
- Gold: 5 per cent
- Silver: 5 per cent
This cess is charged on the value including the basic customs duty, not just the base price.
Using the same example: - Base price: Rs 50,000
- BCD (10 per cent): Rs 5,000 → Total Rs 55,000
- AIDC (5 per cent of Rs 55,000): Rs 2,750
After BCD + AIDC, the landed price of gold becomes Rs 57,750.
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3. Goods and Services Tax (GST)
- Jewellery (Gold & Silver): 3 per cent GST
GST is levied on the total of base price + import duties + making charges.
For instance, suppose a jeweller adds Rs 3,000 as making charges. The taxable value becomes Rs 57,750 + Rs 3,000 = Rs 60,750.
- 3 per cent GST on Rs 60,750 = Rs 1,822.50
Final price to the consumer = Rs 60,750 + Rs 1,822.50 = Rs 62,572.50 for 10g of gold jewellery.
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4. Silver Jewellery Calculation (Example)
For silver, the tax structure is similar:
- Assume base price = rs 7,000 per 100g
- BCD (10%) = Rs 700 → Rs 7,700
- AIDC (5 per cent) = Rs 385 → Rs 8,085
- Making charges = Rs 1,000 → Rs 9,085
- GST (3 per cent) = Rs 272.55
Final price = Rs 9,357.55 for 100g of silver jewellery.
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5. Why These Taxes Matter for Consumers
- Price Transparency: Many consumers focus only on international gold or silver rates, not realising taxes and duties can add 15–18 per cent more.
- Festive Buying: During Dhanteras and Diwali, when demand spikes, jewellers rarely absorb these duties, meaning customers pay the full impact.
- Investment Decisions: For those buying jewellery as an investment, taxes reduce resale margins because you pay taxes upfront but get only metal value when selling back.
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Key Takeaways
- Import duties + GST together can increase final jewellery prices by 15–18 per cent.
- Gold and silver prices you see on websites or TV tickers are pre-tax, not what you pay in-store.
- Knowing the tax structure helps you negotiate making charges better or compare jewellers more effectively.
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