India gold market
Gold in India is quoted per 10 grams — the country's traditional pricing unit — with the daily benchmark published by the India Bullion and Jewellers Association (IBJA), excluding GST and making charges. Retail jewellers quote per gram as well, and futures trade on the Multi Commodity Exchange (MCX). The domestic price runs through four adjustments from the international spot: troy-ounce to 10-gram conversion, dollar-to-rupee conversion, import duty, and GST — which is why Indian prices can stay high even when the dollar price falls, especially when the rupee is weak.
India is the world's largest gold jewellery market by culture if not always by tonnage. Demand peaks around weddings and the festivals of Dhanteras, Diwali and Akshaya Tritiya, when buying gold is considered auspicious. The buyer base spans rural households storing wealth in bangles to urban investors using gold ETFs, digital gold and Sovereign Gold Bonds. Hallmarking by the Bureau of Indian Standards (BIS) is mandatory — implemented across hundreds of districts — so buyers should look for the BIS hallmark on every jewellery purchase. Major retail chains, independent jewellers and banks all sell coins and bars, typically 24-karat for investment and 22-karat for jewellery.
Taxes and rules
A 3% GST applies to the value of gold on every purchase — jewellery, coins, bars and digital gold alike — split as 1.5% CGST and 1.5% SGST. On jewellery, a separate 5% GST is charged on making charges. These rates have been unchanged since GST launched in July 2017.
Import duty is the moving part. The 2024–25 Budget cut the effective duty to about 6.5% (5% basic customs duty plus 1% agriculture infrastructure cess and surcharge), but a May 2026 government notification reportedly raised it back to an effective 15% (10% BCD plus 5% cess), and market reports since describe a 15% import levy. Because this rate has been revised several times, verify the current figure in CBIC notifications before relying on it. When individuals sell old gold to jewellers, no GST applies to the individual; jewellers reselling it charge GST as on a fresh sale.
For zakat calculators
Indian Muslims usually work from the per-10-gram IBJA rate: divide by 10 for the per-gram price, multiply by total grams of gold, add cash and other assets at market value, and test against the nisab. The gold nisab of 87.48 grams is 8.748 "10-gram units" — or simply value 87.48 grams at today's rate. Remember to add 3% GST mentally when comparing with jeweller quotes, since IBJA rates exclude tax.
Try our free zakat calculator with live prices and automatic nisab check. Farmers: also see our ushr calculator.
Frequently asked questions
What is the gold price per 10 grams in India today?
The IBJA publishes a daily benchmark for 24-karat gold per 10 grams, excluding GST and making charges. Retail jewellers quote slightly above this. Check the current day's IBJA rate, as it moves with the dollar price, the rupee and duty changes.
What GST applies to gold in India?
3% GST on the value of the gold itself (all purities, all formats), plus 5% GST on jewellery making charges. Gold ETFs and Sovereign Gold Bonds attract no GST at purchase. Individuals selling old gold to jewellers pay no GST on that sale.
What is BIS hallmarking and why does it matter?
BIS hallmarking is India's mandatory purity certification for gold jewellery, rolled out across hundreds of districts. A hallmarked piece carries the BIS logo, purity grade and jeweller identification — always verify these marks before buying.
When is the best time to buy gold in India?
There is no reliably "cheap" season; prices follow global markets. Culturally, Dhanteras and Akshaya Tritiya are the traditional buying days, but demand then is high. Price-sensitive buyers often watch for corrections after festive peaks and compare making charges, which vary widely between jewellers.
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