Gold and silver rates are among the most searched money topics in India this week, and Dhanteras falls on 6 November 2026. Before you buy — or before you bill a customer, if you run a jewellery shop — here are the tax and paperwork rules that decide the final price.
Key takeaway: Jewellery bought from a jeweller carries 3% GST on the full price, making charges included. Quote PAN for any purchase above ₹2 lakh, and do not pay ₹2 lakh or more in cash — the jeweller faces a 100% penalty. Every gold piece must carry a 6-digit HUID hallmark.
Gold and silver rates this week
| Item | Rate | Date / source |
|---|---|---|
| 24K gold (indicative, Mumbai) | ₹1,47,660 per 10 g | 18 Oct 2026 |
| 22K gold (indicative, Mumbai) | ₹1,35,350 per 10 g | 18 Oct 2026 |
| MCX gold futures | ₹1,45,939 per 10 g | 21 Oct 2026, morning |
| MCX silver futures | ₹2,09,494 per kg | 21 Oct 2026, morning |
Rates move every day and differ by city and jeweller. Use them to understand the calculation, not as a quote.
How GST on gold jewellery is calculated
GST on gold, silver and jewellery is 3%. When a jeweller sells you a finished piece, the making charges are part of that sale, so the 3% applies to gold value + making charges. The separate 5% rate applies only to job work — when you hand over your own gold and a karigar charges you for making it.
| 10 g of 22K jewellery | Amount |
|---|---|
| Gold value (10 g × ₹13,535) | ₹1,35,350 |
| Making charges (12%, example) | ₹16,242 |
| Taxable value | ₹1,51,592 |
| GST at 3% | ₹4,548 |
| Final bill | ₹1,56,140 |
If an invoice shows 5% GST on the making charges of finished jewellery, ask the jeweller why. On the example above, that would add about ₹325.
Old gold exchange
When you exchange old gold, the jeweller values it after testing purity and deducts that value from your bill. Practice on how GST is applied to the new piece varies, so ask before you buy and make sure the invoice shows the old-gold weight, purity and value separately.
PAN and cash rules every buyer should know
| Rule | Limit | What happens |
|---|---|---|
| Quote PAN | Purchase above ₹2 lakh in one transaction, any mode | Jeweller must record your PAN (or Form 60) |
| Cash receipt limit (Sec 186, Income-tax Act 2025) | ₹2 lakh or more from one person in a day / one deal | Jeweller faces a penalty equal to the cash received |
| Splitting bills | Two bills of ₹1.2 lakh in cash on the same day | Still counts as ₹2.4 lakh — not allowed |
Example: 15 g of 22K jewellery costs about ₹2.34 lakh. You must give PAN, and you must pay at least the amount above ₹1,99,999 by UPI, card or bank transfer.
Check the hallmark and HUID
- Every hallmarked gold piece carries three marks: the BIS logo, the purity (for example 22K916) and a 6-digit HUID.
- Verify the HUID in the free BIS CARE app ("Verify HUID") before you leave the shop.
- Silver hallmarking with HUID is voluntary, so ask for the purity in writing on the bill.
Before you buy: checklist
- Check the day's rate for your city and the karat you want.
- Ask for making charges in rupees, not just a percentage.
- Confirm GST is 3% on the total and shown on a proper tax invoice.
- Pay above ₹2 lakh digitally, and carry PAN.
- Verify HUID, and keep the invoice — you need it for resale and for capital-gains tax later.
For jewellers: bill gold correctly in DAM
Field names below are from DAM's product and payment screens.
- Open Search and type Add Product. Set HSN Code to 7113 (jewellery) and GST Rate (%) to 3.
- Search New Sale to bill the piece; add making charges as part of the item value so 3% applies to the total.
- Record payment with Receive Money and Add Payment Mode — choose your Bank Account for UPI or card, so cash stays under ₹2 lakh per customer per day.
GST-ready bills for jewellers
Set HSN 7113 and 3% GST once, then bill every piece correctly in seconds.
Frequently Asked Questions
What is the GST on gold jewellery in 2026?
3% on the full value, including making charges, when you buy finished jewellery from a jeweller.
When is 5% GST charged?
Only on job work — when you give your own gold to be made into jewellery and pay for the making.
Is PAN required to buy gold?
Yes, for a purchase above ₹2 lakh in one transaction, whatever the payment mode.
How much cash can I pay a jeweller?
Less than ₹2 lakh per person per day or per transaction. Above that, pay digitally.
When is Dhanteras 2026?
Friday, 6 November 2026, two days before Diwali on 8 November.
Sources
Content checked on 25 October 2026. Upstox: gold and silver rates, 21 Oct 2026 · Ascendants: gold price ahead of Dhanteras 2026 · BIS: hallmarking and HUID · Income-tax Act, 2025 — Section 186.
Disclaimer: This guide is for educational purposes only and does not constitute formal tax, legal or financial advice. Gold rates are indicative and change daily. Verify with a registered Chartered Accountant (CA) before acting.