The short answer
India has no single retail gold price. The numbers you see differ for six main reasons:
- Purity: a 24K (999) rate and a 22K (916) rate are different numbers. Many displays show both.
- Taxes: some rates include 3% GST, others exclude it.
- Benchmark: a national reference rate (such as IBJA’s), a city jewellers’ association rate and a shop’s own board rate are set differently.
- Timing: rates move during the day. IBJA, for example, publishes separate morning and evening rates.
- Location costs: transport, insurance and local demand make city rates differ.
- Margins and making charges: a jeweller’s board rate includes its own margin, and making charges are added on top.
To compare quotes, ask each jeweller for the rate per gram for the same purity, whether it includes GST, and the making charge and its basis. Then compare the final total for the same net weight.
The rate you see is a layered price
Most published Indian gold prices are built in layers:
- International price. Gold is traded internationally in US dollars. The international benchmark is converted to rupees at the day’s exchange rate.
- Import costs. Customs duty, set nationally, is added. The duty on gold has been changed several times in recent years, most recently with effect from 13 May 2026 (TaxGuru summary). A change in duty moves every Indian rate up or down together; it does not explain why two cities differ.
- Wholesale and city rates. Bullion dealers and city jewellers’ associations publish their own daily rates.
- The shop’s board rate. Each jeweller adds its own margin.
- Your bill. Making charges, stone charges, hallmarking and 3% GST are added to the gold value; our gold jewellery guide explains each line.
A difference at layer 4 or 5 is normal and negotiable. A difference at layers 1 or 2 is the same for everyone.
The national reference: IBJA rates
The India Bullion and Jewellers Association (IBJA) publishes daily opening (AM) and closing (PM) rates for gold of several purities: 999, 995, 916, 750 and 585. Its rates are for gold per 10 grams, and IBJA states that they are “without 3% GST and Making Charges” (IBJA rates). Rates are not published on central government holidays or weekends.
IBJA’s 999 price is also an official reference. The Reserve Bank of India set Sovereign Gold Bond prices from “the simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association” (RBI, Sovereign Gold Bond FAQs).
IBJA rates for 9 October 2026, as listed in its previous-days table (per 10 g, excluding GST):
| Purity | Rate per 10 g | Per gram |
|---|---|---|
| 999 (24K) | ₹1,49,614 | about ₹14,961 |
| 995 | ₹1,49,015 | about ₹14,902 |
| 916 (22K) | ₹1,37,046 | about ₹13,705 |
| 750 (18K) | ₹1,12,211 | about ₹11,221 |
| 585 (14K) | ₹87,524 | about ₹8,752 |
These are wholesale benchmark figures, not prices you will be offered in a shop. A shop’s board rate for the same day is usually higher, because it includes the jeweller’s costs and margin.
Why cities differ
India does not have one benchmark spot price for every city. Asian Age reported that “each city has a different spot price for 24 carat gold”, with differences “sometimes as high as Rs 2500 per 10 gm on a given day”, and that bullion associations in some cities publish their own rates (Asian Age). Brokers’ explainers describe the same layered structure (ICICI Direct).
The usual reasons:
- City association rates. Local jewellers’ associations announce a daily rate for their city. Different associations, different methods.
- Transport and insurance. Gold arrives through a few ports and airports. Moving and insuring it inland adds cost.
- Local demand. In wedding and festival seasons, local demand can push the local premium up.
- Competition. In cities with many large jewellers, margins can be thinner.
Since GST replaced state VAT and entry taxes, the tax part of the price is the same everywhere: 3% on jewellery. Remaining city differences come from the other factors above.
Why shops in the same city differ
Two shops on the same street can show different “today’s rate” boards because:
| Reason | What to ask |
|---|---|
| One board shows 24K, the other 22K | “Which purity is this rate for?” |
| One includes GST, the other does not | “Is GST included in this rate?” |
| One updates in the morning only, the other during the day | “When was this rate set?” |
| Different margins in the board rate | Compare the final bill, not the board |
| A low rate with high making charges (or the reverse) | Ask for both in writing |
| A buy rate and a sell rate | The rate for buying from you (exchange or buy-back) is lower than the rate for selling to you |
A low headline rate can hide high making charges, and a “zero making charge” offer can come with a higher gold rate. Only the total for the same piece tells you which is cheaper.
Why websites show different rates
Rate websites and apps draw on different sources: IBJA, a commodity exchange price, a city association, or a particular jeweller’s board. They also differ in purity (24K or 22K), unit (per gram or per 10 g), whether GST is included, and how recently they were updated. Before you use a website’s figure in a negotiation, check which of these it is showing.
Large jewellers often publish their own daily rate on their websites, which can differ from both IBJA and other shops. That is the rate they sell at, not a national price.
How to compare two quotes: a worked example
Two jewellers quote for a 22K chain of 10.000 g net weight. Figures are illustrative.
| Jeweller A | Jeweller B | |
|---|---|---|
| Board rate (22K, per gram) | ₹13,900, GST extra | ₹14,300 including 3% GST |
| Rate excluding GST | ₹13,900 | ₹14,300 ÷ 1.03 = ₹13,883 |
| Gold value (10 g) | ₹1,39,000 | ₹1,38,835 |
| Making charge | 12% of gold value = ₹16,680 | ₹1,000 per gram = ₹10,000 |
| Hallmarking (if shown) | ₹75 | ₹75 |
| Subtotal before GST | ₹1,55,755 | ₹1,48,910 |
| GST 3% | ₹4,672.65 | ₹4,467.30 |
| Total | ₹1,60,427.65 | ₹1,53,377.30 |
Jeweller B’s board rate looked higher, but its rate included GST and its making charge was lower, so its total is about ₹7,050 less. The gold content is identical, so only the total matters.
Exchange and buy-back rates
The rate a jeweller pays you for old gold is not its selling rate. Buyers deduct for testing, refining and margin, and the deduction differs between selling for cash and exchanging for new jewellery. See selling or exchanging old gold for how old gold is valued.
A checklist before you buy
- Note the IBJA rate for the day as a reference point
- Ask each jeweller for the 22K or 18K rate per gram, and whether GST is included
- Ask for the making charge and its basis: percentage, per gram or fixed
- Check that the piece is hallmarked, and verify its HUID in the BIS CARE app (how to verify a HUID)
- Compare totals for the same net weight, not board rates
- Get the final breakdown in writing before paying
FAQ
Why is the gold rate different in different cities?
City jewellers’ associations set their own daily rates, and transport, insurance, local demand and competition differ. Taxes are now the same across India, so these other factors explain most of the gap.
Why is the gold rate different in different shops?
Shops may display different purities (24K or 22K), include or exclude GST, update at different times and add different margins. Compare the final total for the same net weight.
Why do gold rate websites disagree?
They draw on different sources and may show different purities, units, tax treatment and update times. Check what each figure represents.
What is the 22K gold price per gram today?
It changes daily. IBJA’s listed 916 (22K) rate for 9 October 2026 was ₹1,37,046 per 10 g, about ₹13,705 per gram, excluding GST and making charges. Shop rates are usually higher.
Is a lower gold rate always cheaper?
No. A lower rate can come with higher making charges. Only the total for the same net weight and purity tells you which is cheaper.
Sources
- India Bullion and Jewellers Association: daily gold and silver rates (AM and PM rates per 10 g by purity; “without 3% GST and Making Charges”), 9 October 2026 rates, checked 11 October 2026.
- Reserve Bank of India: Sovereign Gold Bond FAQs (bond prices based on IBJA’s 999 closing price), checked 11 October 2026.
- Asian Age: India lacks uniform gold price; spot rates vary by city, checked 11 October 2026.
- ICICI Direct: Why gold rates differ city-wise in India (layered pricing), checked 11 October 2026.
- TaxGuru: Customs duty on gold and silver revised, effective 13 May 2026, checked 11 October 2026.
