GST rates in India vary wildly depending on what you're buying — from 3% on gold to 18% on professional services to a complex slab system for real estate. If you've ever wondered how much GST applies to your gold purchase, new flat, or consulting invoice, this guide breaks it all down with real calculations.
GST on Gold in India (2026)
Gold has a special GST rate that sits outside the standard 5%, 12%, 18%, and 28% slab structure.
Current GST Rates on Gold
| Gold Type | GST Rate |
|---|---|
| Gold bars and coins | 3% |
| Gold jewellery (metal value) | 3% |
| Making charges on jewellery | 5% |
| Gold ETFs and sovereign gold bonds | Exempt |
| Digital gold | 3% |
The 3% rate applies to the base value of gold. Making charges attract an additional 5% GST. This means when you buy gold jewellery, you pay GST on two components.
GST Calculation Example — Gold Jewellery Purchase
Suppose you buy a gold necklace:
- Gold value: ₹2,00,000
- Making charges: ₹20,000
GST Calculation:
- GST on gold value: ₹2,00,000 × 3% = ₹6,000
- GST on making charges: ₹20,000 × 5% = ₹1,000
- Total GST payable: ₹7,000
- Total bill: ₹2,27,000
Common Mistake #1: Ignoring Making Charges GST
Many buyers assume the 3% GST covers everything. It doesn't. Making charges are taxed separately at 5%. Always ask the jeweller for a breakup of gold value and making charges on your invoice.
GST on Real Estate in India (2026)
Real estate GST is more nuanced. The rate depends on the property type, whether it's under construction, and whether it qualifies as affordable housing.
Current GST Rates on Real Estate
| Property Type | GST Rate | ITC Available? |
|---|---|---|
| Affordable housing (under construction) | 1% | No |
| Non-affordable housing (under construction) | 5% | No |
| Commercial property (under construction) | 12% | Yes |
| Ready-to-move-in (with OC) | 0% | N/A |
| Land (vacant) | 0% | N/A |
| Rental — residential | Exempt | N/A |
| Rental — commercial | 18% | Yes |
What Qualifies as Affordable Housing?
A property is considered affordable housing if:
- Metro cities (Delhi-NCR, Mumbai-MMR, Chennai, Kolkata, Hyderabad, Bengaluru, Pune): Carpet area up to 60 sq. metres AND value up to ₹45 lakh
- Non-metro cities: Carpet area up to 90 sq. metres AND value up to ₹45 lakh
GST Calculation Example — Under-Construction Flat
Scenario 1: Affordable Housing
- Flat value: ₹40,00,000 (carpet area 55 sq.m in Mumbai)
- GST: ₹40,00,000 × 1% = ₹40,000
Scenario 2: Non-Affordable Housing
- Flat value: ₹1,20,00,000 (carpet area 120 sq.m in Bengaluru)
- GST: ₹1,20,00,000 × 5% = ₹6,00,000
Common Mistake #2: Paying GST on Ready-to-Move Properties
If the builder has received the Occupancy Certificate (OC) or Completion Certificate (CC), the property is considered ready-to-move-in. No GST applies. Only stamp duty and registration charges are payable. Don't let anyone charge you GST on a completed property.
GST on Professional and Business Services (2026)
Most professional and business services fall under the 18% GST slab.
Service-Wise GST Rates
| Service Type | GST Rate |
|---|---|
| IT and software services | 18% |
| Consulting and advisory | 18% |
| Legal services | 18% |
| Accounting and CA services | 18% |
| Advertising services | 18% |
| Restaurant (non-AC, without ITC) | 5% |
| Restaurant (AC, with liquor license) | 18% |
| Hotel room (tariff ≤ ₹1,000) | 12% |
| Hotel room (tariff > ₹7,500) | 18% |
| Education (school/college) | Exempt |
| Healthcare | Exempt |
GST Calculation Example — Freelance Consulting
- Consulting fee: ₹1,00,000
- GST (18%): ₹18,000
- Total invoice: ₹1,18,000
If you're a freelancer or consultant earning above ₹20 lakh annually (₹10 lakh for special category states), GST registration is mandatory.
Common Mistake #3: Not Claiming ITC on Services
If you're a registered business paying 18% GST on services you consume (software subscriptions, legal fees, office rent), you can claim Input Tax Credit (ITC) on these. Many small businesses forget this and effectively pay double tax.
Quick GST Rate Finder
Not sure which GST rate applies to your product or service? Here's a simplified lookup:
| Category | Typical GST Rate |
|---|---|
| Essential food items | 0% |
| Gold and precious metals | 3% |
| Affordable housing | 1% |
| Packaged food, economy hotels | 5% |
| Non-affordable housing, standard goods | 5-12% |
| Electronics, services, non-AC restaurants | 12-18% |
| Luxury items, cars, aerated drinks | 28% |
Calculate Your GST Instantly — Free Tool
Manually calculating GST across different rates and categories can get confusing. DoAide's free GST Calculator does it instantly:
- Supports all GST slabs (3%, 5%, 12%, 18%, 28%)
- Calculate GST-inclusive or GST-exclusive amounts
- Works for goods, services, gold, and real estate
- No sign-up, no login — completely free
Try the GST Calculator at gst.doaide.com/calculator and save yourself the headache.
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GST rates mentioned are current as of 2026. Rates are subject to change based on GST Council decisions. Always verify the latest rates on the CBIC website.
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