With Diwali just around the corner, the demand for gold jewellery, coins, biscuits and bars is expected to rise significantly. Now, here comes the good part. On 15th August, 2025, as part of his Independence Day speech, Prime Minister Narendra Modi mentioned that the GST (Goods and Services Tax) will be revamped before Diwali.
So, now the question comes to how this decision will reflect in our everyday lives, especially as Diwali is nearing. According to The Times of India, the Indian Government has proposed this deal to reduce the tax burden by implementing the ‘next generation’ GST.
Reports suggest that 99% items in the 12% tax slab may be moved to 12%, which has raised hopes for a GST cut on gold before Diwali.
A Look At The Current GST On Gold In India
Be it weddings, long-term investments, festivals and whatnot, gold is one of the most valuable assets, especially among Indians.
Currently, the GST rate on gold is set at 3% (1.5% CGST + 1.5% SGST), and therefore, the actual cost of gold goes up for consumers.
Here is an example:
If the gold price is ₹60,000 for 10 grams, you don’t just pay ₹60,000, you also pay GST and making charges, which increase the final bill.
This tax structure has been debated for a long time, as gold is considered not just jewellery but also a financial investment for Indian households.
Now, let’s look at the GST rates on different types of gold in India:
GST Rates on Gold In India
| 22 Carat | 3% |
| 24 Carat | 3% |
| Digital Gold/Digi Gold | 3% |
| Gold Investment Scheme | GST applied to the service charges |
Should You Buy Gold Now or Wait Until Diwali?
Since gold is a strong long-term investment in India and the GST rates may drop before Diwali, it is natural to think whether you should buy gold now or wait until the festive season.
Here’s what you need to consider to make an informed decision:
- Gold price trends: Given the changing economic conditions, inflation, and market trends, gold prices may go up or down. So, if you are looking for affordable rates, buying now may make it easier, given the unpredictability of prices.
- Festive offers: Jewellers usually roll out attractive offers during Diwali, which include discounts on making charges, cashback, or exchange schemes. This may reduce the total cost, making it worth waiting for the festive shopping period.
- Purchase purpose: If you are buying gold to invest, buying sooner is the ideal option, as it can help avoid unexpected price spikes. But if you are buying gold for festive or wedding purposes, it is best to wait until Diwali to access better deals and offers.
How Will the GST Revamp On Gold Benefit You?
If the GST rates on gold in India drop by Diwali as expected, here’s what you can access:
- Cheaper Gold Purchases: Lower GST means you will pay less tax when buying jewellery, coins, or bars.
- Affordable Festive Shopping: Buying jewellery during GST cut makes iA GST cut will make jewellery more budget-friendly.
- Safer and Transparent Buying: Lower taxes will encourage people to buy from trusted, registered jewellers instead of the grey market. This ensures you get BIS-hallmarked jewellery with proper bills and purity guarantee.
- Better for Investors: If you buy gold as an investment, lower GST reduces your buying cost, which means better profits when you sell in the future.
Tips for Buying Gold During Diwali 2025
Here are some smart and simple measures you can take if you are buying gold before or by Diwali this year, given the upcoming GST changes.
- Check for GST updates: Keep track of updates so you can shop at the right time.
- Check gold purity: Always buy BIS-hallmarked jewellery as it proves its purity.
- Compare charges: Despite the GST cut, gold prices may still vary based on the seller. Hence, compare the available options to make the ideal choice.
- Buy from trusted jewellers: Avoid unregistered sellers to ensure quality and legal compliance.
- Consider gold coins or bars: These usually have lower making charges compared to jewellery, are ideal for investment, and are easy to store.
If you are thinking of a cost-effective solution to buy gold before Diwali, a personal loan might be of help. At loan aggregator platform Buddy Loan, borrowers can connect with multiple lenders, compare options and find the right lender based on the user’s financial profile.
Conclusion
With a possible GST revamp before Diwali this year, gold buyers across the country are hopeful and excited. As reports suggest that the government is looking at lowering GST rates across many items, there is hope that gold could also see some relief.
If GST on jewellery, coins and bars is reduced, it would directly make gold more affordable for families and investors during the festive season.
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