How to Buy Gold in India — Complete Guide
Gold buying in India can be overwhelming — from choosing the right karat to understanding making charges, GST, and hallmarking. This guide walks you through every step so you buy smart and get the best value.
In This Guide
- Step 1: Understand Gold Purity (Karats)
- Step 2: Check BIS Hallmarking
- Step 3: Know the Full Cost Breakdown
- Step 4: Choose Where to Buy
- Step 5: Compare Prices Before Buying
- Step 6: Physical Gold vs Digital Gold vs ETF
- Common Mistakes to Avoid
- FAQs
Step 1: Understand Gold Purity (Karats)
The first thing to understand when buying gold in India is karat — the unit that measures how pure the gold is.
| Karat | Purity | Hallmark | Best For |
|---|---|---|---|
| 24K | 99.9% | 999 | Gold coins, bars, investment |
| 22K | 91.6% | 916 | Jewellery (most popular) |
| 18K | 75.0% | 750 | Diamond-studded jewellery |
| 14K | 58.3% | 585 | Fashion jewellery |
For jewellery in India, 22K (916) gold is the most common. It contains 91.6% pure gold and 8.4% alloys (typically copper or silver) to make it durable enough for daily wear. 24K is too soft for jewellery and is primarily used for coins, bars, and investment-grade products.
Step 2: Always Check BIS Hallmarking
BIS Hallmarking is India's official gold quality certification, issued by the Bureau of Indian Standards. Since April 2023, BIS hallmarking is mandatory for all gold jewellery sold in India.
What to Look for on a BIS Hallmark
- 🔺BIS Logo (triangle with three lines)
- 🔢Purity mark: 999, 916, 875, 750, 585, or 375
- 🆔HUID (Hallmark Unique Identification) — a 6-character alphanumeric code
- 💎Jeweller's identification mark
The HUID allows you to verify the jewellery on the BIS Care app or website. If a jeweller refuses to sell hallmarked jewellery, walk away — it is illegal to sell non-hallmarked jewellery above a certain threshold.
Step 3: Understand the Full Cost Breakdown
The gold price you see on GoldRate.app is the MCX base rate. When you buy jewellery, the final bill includes several additional charges. Understanding these prevents you from overpaying.
Gold Price (MCX Rate)
The base market price per gram. This is the price we track in real-time.
Making / Wastage Charges
Labour charges for crafting the jewellery. Ranges from 8% to 25% depending on the design complexity and jeweller. Always negotiable.
GST (Goods & Services Tax)
3% flat GST on the gold value + 5% GST on making charges.
Association / Local Premium
State and city-level surcharge added by local jewellers' associations. Varies by state.
Example: Buying 10g of 22K Gold Jewellery
Step 4: Where to Buy Gold in India
Established Jewellery Stores
Pros
- ✓ Wide variety of designs
- ✓ BIS hallmarking guaranteed
- ✓ Exchange/buy-back policies
Cons
- ✗ Higher making charges
- ✗ Pressure selling
Bank & Post Office Gold Coins
Pros
- ✓ Pure 24K gold
- ✓ Tamper-proof packaging
- ✓ Trusted source
Cons
- ✗ Limited designs
- ✗ Often no buy-back
Online Platforms (Tanishq, Malabar)
Pros
- ✓ Compare prices easily
- ✓ Home delivery
- ✓ Transparent pricing
Cons
- ✗ Can't inspect in person
- ✗ Delivery delays
Digital Gold / Gold ETF
Pros
- ✓ Start with ₹1
- ✓ No storage risk
- ✓ Instant liquidity
Cons
- ✗ No physical possession
- ✗ Platform risk
Step 5: Compare Prices Before You Buy
Gold prices vary significantly between jewellers and cities. Before walking into a shop, check the current 22K gold rate on GoldRate.app for your city. This gives you a negotiation baseline.
Negotiation Tips
- • Making charges are negotiable — especially for high-value purchases. Start by asking for a 20–30% reduction.
- • Buy on Tuesdays or Wednesdays — gold markets are typically quieter mid-week and prices can be slightly lower.
- • Ask for a separate bill clearly showing gold weight, karat, making charges, and GST. A legitimate jeweller will always provide this.
- • Check the HUID on the BIS Care app before finalising the purchase.
Common Mistakes to Avoid
✗ Buying without checking hallmarking
✓ Fix: Always verify the BIS hallmark and HUID code. Do not buy from jewellers who resist showing it.
✗ Ignoring making charges
✓ Fix: Making charges can add 10–25% to the gold value. Always ask the percentage upfront and negotiate.
✗ Not getting a detailed receipt
✓ Fix: A proper bill must show: weight in grams, karat, rate per gram, making charges, GST, and total amount.
✗ Buying at festivals without comparing
✓ Fix: Jewellers often hike making charges during Dhanteras and Akshaya Tritiya. Check prices a week before.
✗ Storing physical gold without insurance
✓ Fix: Bank locker or a jewellery insurance policy is essential for physical gold above ₹2–3 lakh.
FAQs — Buying Gold in India
What is the best time to buy gold in India?
There is no universally "best" time, but gold prices historically dip in mid-year (May–July) compared to the festival season peak (September–November). Monitoring price trends on GoldRate.app helps you identify dips.
Is it safe to buy gold online in India?
Yes, buying from reputable platforms like Tanishq, Malabar Gold, MMTC-PAMP, or digital gold platforms (Paytm Gold, PhonePe Gold, HDFC Gold) is safe. Always ensure they provide BIS hallmarked gold with proper receipts.
Can I exchange old gold at a jeweller?
Yes. Most jewellers accept old gold for exchange, but they will deduct impurity (testing) charges, melting costs, and sometimes apply a lower exchange rate. Compare the "exchange rate" vs the "buy rate" offered.
How much gold can I buy without PAN in India?
You need to provide PAN card details for cash purchases above ₹2 lakh. For card/UPI payments, there is no mandatory PAN limit, but the jeweller may request it for their records.
Is there GST on gold in India?
Yes. 3% GST applies on the gold value, and 5% GST applies on making charges. This is non-negotiable and mandatory.
Check Today's Gold Rate Before You Buy
Always compare with the current market rate to ensure you're getting a fair deal.
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