Gold & Silver Rates 2025: GST Rate Cut Brings Relief to Buyers

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by

Himanshu
in

The government has announced a reduction in GST for gold and silver, offering significant relief to buyers and investors. This move is expected to make jewelry, coins, and investment-grade precious metals more affordable.

In this article, we cover current gold and silver rates, the impact of the GST cut, and how it affects buyers and jewelers.

Key Highlights of GST Rate Cut for Gold & Silver

  • Gold & Silver GST Reduced:
    • Previous GST Rate: 3%
    • New GST Rate: 1%
  • Effective Date: Applicable from September 2025 onwards.
  • Purpose:
    • Reduce the cost burden on consumers.
    • Boost investment in precious metals.
    • Encourage legal purchase channels instead of black market trading.

Current Gold & Silver Rates (Indicative)

Metal24K Gold (per 10g)22K Gold (per 10g)Silver (per kg)
Rate Before GST Cut₹58,500₹53,500₹72,000
Rate After GST Cut₹57,900₹53,000₹71,300
Savings Per Unit₹600₹500₹700

Note: Prices are indicative and may vary slightly based on city and dealer.

Impact of GST Rate Cut on Buyers

  1. Lower Purchase Price: Consumers save directly due to GST reduction.
  2. Increased Investment Appeal: Gold and silver are more attractive as investment options.
  3. Affordable Jewelry: Jewelry prices drop, making gold ornaments more accessible.
  4. Boost to Jewelers: Lower taxes may increase sales volume in the market.

How GST Rate Cut Works for Jewelry

TypePrevious Price with 3% GSTNew Price with 1% GSTSavings
10g 22K Necklace₹53,500 + ₹1,605 = ₹55,105₹53,500 + ₹535 = ₹54,035₹1,070
10g 24K Coin₹58,500 + ₹1,755 = ₹60,255₹58,500 + ₹585 = ₹59,085₹1,170
500g Silver Coin₹36,000 + ₹1,080 = ₹37,080₹36,000 + ₹360 = ₹36,360₹720

FAQs – Gold & Silver GST Rate Cut

Q1: What is the new GST rate for gold and silver?
A: The GST rate has been reduced from 3% to 1%.

Q2: Does this GST cut apply to both jewelry and coins?
A: Yes, it applies to investment-grade gold, silver coins, and jewelry.

Q3: How much can a buyer save?
A: Savings vary depending on weight and purity. For example, 10g 22K gold jewelry saves around ₹1,070.

Q4: Will the GST cut affect resale value?
A: The GST cut only affects the purchase price. Resale rates are influenced by market spot prices.

Q5: How can jewelers apply the GST cut?
A: Jewelers must update their billing software and invoices to reflect the new 1% GST rate.

Conclusion

The GST rate cut on gold and silver is a welcome relief for both buyers and investors. With savings of over ₹1,000 on standard gold jewelry and coins, this move encourages legal and transparent purchases.

Buyers should monitor daily gold and silver rates and consider purchasing during this period to maximize benefits.