Tax Implications of Gold Investments in India
✍️ Author: Bhavesh Bishnoi
📅 Created: June 02, 2026
Investing in gold in India comes with various tax implications that investors should be aware of. Physical gold, including jewelry, coins, and bars, is subject to Goods and Services Tax (GST) at the time of purchase. The GST rate for gold is currently 3%, with an additional 5% making charge on jewelry. Capital gains tax also applies when selling gold. If the gold is sold within 36 months of purchase, it is considered a short-term capital asset.
Frequently Asked Questions
❓ Is GST applicable on gold purchases?
Yes, a 3% GST is applicable on gold purchases in India, with an additional 5% on making charges for jewelry.
❓ Are SGBs tax-free?
Capital gains from SGBs are tax-exempt if held until maturity, but the annual interest is taxable.