How to Buy Gold in India: BIS Hallmark, GST & Best Tips

India's gold rate is set daily by the India Bullion and Jewellers Association (IBJA), from the international spot price, the USD/INR exchange rate and the 6% import duty. The IBJA publishes the benchmark for 999 and 916 gold every working day, and every jeweller in the country quotes against it.

Before you buy, check the day's IBJA rate — the live rate strip at the top of this page shows it. A jeweller's gold price should track the IBJA rate closely; if it does not, ask why. The rate is the same across India — what differs between shops is making charges, not the metal price.

BIS hallmarking is mandatory for gold jewellery sold in India. A hallmarked piece carries three marks: the BIS logo (a triangle), the purity mark (916 for 22K, 750 for 18K, 999 for 24K) and the jeweller's identification mark. Together they certify that the gold is what the seller claims.

Always buy hallmarked jewellery, and check the marks with a magnifier before you pay. Unmarked gold may be under-karated — sold as 22K when it is really 20K — and you will only discover the loss when you resell. Hallmarked gold also resells for more, because the buyer can trust the purity without testing.

Two taxes sit inside the price of gold in India. Import duty of 6% is already included in the IBJA rate (cut from 15% in the July 2024 budget) — you never see it separately. GST of 3% applies on the gold value, and 5% GST applies on making charges, and both appear on your invoice.

On a typical jewellery purchase, the total tax is roughly 3% of the gold value plus 5% of the making charges. Ask the jeweller to show the GST separately on the invoice — it should be 3% of the gold value, not 3% of the total bill. If the numbers do not add up, ask for a corrected invoice before you pay.

Making charges are the jeweller's fee for turning gold into jewellery, and they are the most negotiable part of the price. Plain pieces should carry low making charges; intricate bridal work carries higher ones. There is no fixed rate — it varies by design, by city and by jeweller.

Always ask for the making charge separately from the gold value, compare it between two or three shops, and negotiate — especially in the off-season (June–August), when jewellers offer lower making charges to attract buyers. The gold rate is fixed; the making charge is not.

The big national chains — Tanishq, Kalyan, Malabar Gold, Joyalukkas — offer hallmarked jewellery, transparent pricing and buyback policies, and are a safe choice for first-time buyers. Established local jewellers, especially family shops with decades of history, can offer better making charges and personal service.

Online gold buying (through jewellers' websites and apps) is growing, but inspect the piece in person before a large purchase, and check the return and buyback policy. For investment gold, consider sovereign gold bonds and digital gold alongside physical jewellery — they avoid making charges entirely.