Gold in India is taxed under GST rather than VAT: 3% GST on the value of the gold itself, plus 5% GST on the making (labour) charge. These rates have been unchanged since GST launched in July 2017 and were left untouched in the September 2025 "GST 2.0" rate rationalisation. On top of GST, imported gold carries a basic customs duty — cut sharply from 15% to 6% in the July 2024 Union Budget — which feeds into the landed price before GST is applied. Because duty is set by the government and revised in most budgets, it is the single most policy-sensitive part of the Indian gold price; always treat the current duty as something to re-confirm around budget time.

22-karat gold — hallmarked "916" for its 91.6% purity — is the default for Indian jewellery, valued for holding its form in intricate wedding and festival designs while still being close to pure. 24K ("999") is bought as coins and bars for investment, and 18K ("750") is used for lighter, stone-studded, and contemporary pieces. Since mandatory BIS hallmarking with a six-digit HUID (Hallmark Unique ID) was rolled out from 2021 and progressively extended across districts, reputable jewellers must stamp each piece with the BIS mark, purity grade, and HUID — check for all three, and insist on a GST invoice itemising gold value and making charge separately.

Unlike the dollar-pegged Gulf currencies, the Indian Rupee floats — it is market-determined, with the Reserve Bank of India intervening only to smooth volatility. That means the local gold price moves on two axes at once: the international spot price (quoted in US dollars) and the USD/INR exchange rate. When the rupee weakens against the dollar, gold gets more expensive in India even if the global dollar price is flat. Layered on top is import duty: India produces very little gold domestically and imports most of it, so changes to customs duty feed straight through to retail prices. This combination is why Indian gold prices can move differently from the headline global price on any given day.

Gold is woven into Indian weddings and festivals — buying peaks around Akshaya Tritiya, Dhanteras, and Diwali, and bridal gold remains a major household purchase. Prices are commonly quoted per 10 grams (the standard wholesale unit) and per gram at retail, while the traditional tola (11.66 g) still appears in older and rural pricing. Rates are published daily by jewellers' associations and bullion markets in cities like Mumbai, Delhi, Chennai, and Ahmedabad, and large chains display the day's per-gram rate openly. Making charges — fixed per gram or as a percentage — are the main negotiable element; the metal value itself is set by weight, purity, and the day's rate.