GST on gold biscuits in India is 3% under HSN code 7108 12. This rate applies to gold in unwrought forms including bars, biscuits, and ingots, and has remained unchanged since July 2017. Total import tax on gold is approximately 18.5% including BCD, AIDC, SWS, and IGST.
GST on Gold Biscuit: Rate, HSN Code 7108 and Tax Treatment in India
GST on gold biscuits in India is 3% under HSN code 7108. This rate applies to gold in unwrought forms — bars, biscuits, ingots, granules — and has remained unchanged since GST’s rollout in July 2017. If you are buying, selling, or importing gold biscuits, understanding the HSN code, ITC eligibility, and the total tax on imports is essential for correct compliance and pricing.
- GST on gold biscuits: 3% (HSN 7108 12)
- GST on gold making charges: 5% (separate from gold value)
- Total import tax on gold: ~18.5% (BCD 10% + AIDC 5% + SWS + 3% GST)
- Sovereign Gold Bonds and Gold ETFs: no GST
- ITC available only if purchased from GST-registered suppliers
- What Is the GST Rate on Gold Biscuits and Which HSN Code Applies?
- How Is GST Calculated on Gold Biscuit Purchases and Sales?
- What Are the Different GST Rates for Gold Products in India?
- Does GST Apply on Gold Biscuit Imports and What Is the Total Tax?
- Who Must Charge GST on Gold Biscuit Transactions and When?
- Can Gold Dealers Claim Input Tax Credit on Gold Biscuit Purchases?
- What Are the GST Compliance Requirements for Gold Dealers in India?
What Is the GST Rate on Gold Biscuits and Which HSN Code Applies?
Gold biscuits attract 3% GST as per Schedule I of the CGST Act 2017. The applicable HSN code is 7108, which covers gold in unwrought or semi-manufactured forms or in powder form. Gold biscuits fall under HSN 7108 12 (non-monetary gold in unwrought forms other than powder). The 3% rate was a deliberate policy choice to keep near-parity with the pre-GST tax structure and prevent informal market transactions.
| HSN Code | Description | GST Rate |
|---|---|---|
| 7108 10 | Gold powder (non-monetary) | 3% |
| 7108 12 | Non-monetary gold in unwrought forms (bars, biscuits, ingots) | 3% |
| 7108 13 | Gold in semi-manufactured forms (sheets, strips, wire) | 3% |
| 7108 20 | Monetary gold (central bank reserves) | Nil |
How Is GST Calculated on Gold Biscuit Purchases and Sales?
GST is calculated on the transaction value (price charged by the seller). The 3% applies to the gold value alone.
| Gold value (100g × Rs 7,200/g) | Rs 7,20,000 |
| GST @ 3% | Rs 21,600 |
| Total invoice value | Rs 7,41,600 |
For B2B transactions, the buyer pays GST but claims it back as ITC when selling onwards. For end consumers (B2C), the 3% is an actual cost.
What Are the Different GST Rates for Gold Products in India?
| Gold Product | HSN | GST Rate | Notes |
|---|---|---|---|
| Gold biscuits / bars / ingots | 7108 12 | 3% | Investment gold |
| Gold coins (non-currency) | 7118 / 7108 | 3% | Commemorative coins |
| Gold jewellery (value) | 7113 | 3% | On gold component |
| Making charges | 9988 | 5% | Labour/service component |
| Sovereign Gold Bonds | — | Nil | Financial instrument |
| Gold ETFs | — | Nil | Securities |
Does GST Apply on Gold Biscuit Imports and What Is the Total Tax?
| Levy | Rate | Notes |
|---|---|---|
| Basic Customs Duty (BCD) | 10% | On CIF value |
| Agriculture Infrastructure Development Cess (AIDC) | 5% | On assessed value |
| Social Welfare Surcharge | 10% of BCD (= ~1%) | On BCD amount |
| IGST | 3% | On value + all duties |
| Total approximate | ~18.5% | Only RBI-authorised entities can import gold |
Who Must Charge GST on Gold Biscuit Transactions and When?
Any GST-registered dealer selling gold biscuits must charge 3% GST. Registration is mandatory above Rs 40 lakh turnover (Rs 20 lakh for special category states).
- Registered to registered (B2B): 3% GST charged; buyer can claim ITC
- Registered to consumer (B2C): 3% GST charged; no ITC for buyer
- Registered buyer from unregistered seller: RCM may apply; buyer pays GST directly
- Unregistered seller below threshold: No GST on invoice; buyer loses ITC chain
Can Gold Dealers Claim Input Tax Credit on Gold Biscuit Purchases?
| Scenario | ITC Available? | Reason |
|---|---|---|
| Dealer buys from registered supplier and resells | Yes | Taxable outward supply |
| Jeweller buys to make jewellery for sale | Yes | Input to taxable supply |
| Buys from unregistered supplier | No | No GST charged; nothing to credit |
| End consumer for personal investment | No | Personal consumption excluded |
What Are the GST Compliance Requirements for Gold Dealers in India?
- GST registration: Mandatory above Rs 40 lakh turnover. Voluntary registration advisable below threshold.
- HSN on invoices: 4-digit HSN for turnover up to Rs 5 crore; 6-digit (710812) for turnover above Rs 5 crore.
- PAN for cash transactions above Rs 2 lakh: Mandatory under Income Tax Act. Dealers must collect PAN or Form 60.
- GSTR-1 and GSTR-3B: Monthly or quarterly filing depending on turnover.
- PMLA compliance: Gold dealers with turnover above Rs 2 crore must maintain KYC and report suspicious transactions to FIU.
Frequently Asked Questions
3% GST under HSN 7108 12, unchanged since July 2017.
HSN 7108 12 for non-monetary gold in unwrought forms. Use 4-digit (7108) for <Rs 5 crore turnover, 6-digit (710812) for >Rs 5 crore.
Yes. Total import tax ~18.5%: BCD 10% + AIDC 5% + SWS + IGST 3%.
Yes, if purchased from GST-registered suppliers and used for taxable outward supply (resale or jewellery manufacturing).
5% GST on making charges, separate from the 3% on gold value.
Related guides: GST Registration • GST Return Filing
CA Madhusmita Padal is a Practicing Chartered Accountant with firms based in Odisha and Chennai. She specializes in taxation, company law, and auditing. She is passionate about simplifying complex concepts and making knowledge accessible to all.