At purchase: GST of 3%
Buying gold in India attracts 3% GST, whether it is a coin from a jeweller or a gram of digital gold. It is charged once, on the purchase, and it is a tax rather than a fee — nobody on the platform keeps it. On Ticgetz it is shown as its own line at checkout, so the rate you compare against a bullion quote stays clean.
At sale: capital gains
Profit on gold is a capital gain. The July 2024 rules reset the holding-period boundary for gold and other non-financial assets to 24 months, and changed the long-term treatment to a flat rate without indexation:
| Held for | Treated as | Taxed at |
|---|---|---|
| Up to 24 months | Short-term capital gain | Added to your income, taxed at your slab rate |
| More than 24 months | Long-term capital gain | 12.5% flat, without indexation benefit |
Your cost of acquisition is what you paid for the metal. Whether the 3% GST you paid can be added to that cost is a point on which practice varies — ask your CA, and keep the invoice either way.
In between: KYC and the annual threshold
You can start buying with nothing more than a verified mobile number. KYC becomes mandatory once your purchases cross the non-KYC ceiling for a financial year — ₹1.8 lakh on Ticgetz. Nothing is confiscated at the line; buying is simply paused until KYC is complete, and your holding sits untouched in the meantime.
- 1
PAN
Needed for KYC and for larger transactions generally. Have it before you approach the threshold, not after.
- 2
Aadhaar-based verification
The usual route, completed in the app in a few minutes.
- 3
Bank account in your own name
Sale proceeds are paid only to an account matching your KYC. Third-party payouts are not possible — deliberately.
What to keep, and for how long
- Every purchase invoice — it carries your cost of acquisition and the GST paid.
- Every sale statement — date and amount, which together decide short- versus long-term.
- Delivery paperwork, if you ever redeem coins; it proves the chain from grams to metal.
- Keep all of it for at least as long as the assessment can be reopened for that year — your CA will give you the current window.
Everything on this page is general information about Indian tax rules as they stood when it was last updated. It is not tax advice, and it cannot account for your income, your other capital gains, or a change in the law. For anything material, talk to a chartered accountant.
Questions people ask
Is there GST when I sell digital gold back?
No. GST applies on purchase. Selling your holding back to the platform does not attract GST from you.
How long must I hold gold for long-term capital gains?
More than 24 months, for transfers after 23 July 2024. Long-term gains are then taxed at a flat 12.5% without indexation; shorter holdings are taxed at your slab rate.
Do I need a PAN to buy digital gold?
Not for small purchases on Ticgetz, where a verified mobile number is enough to start. PAN is required for KYC, which becomes mandatory once your purchases cross ₹1.8 lakh in a financial year.
Does buying gold have to be declared in my ITR?
Buying is not itself a taxable event to declare, but gains on sale are, and assets can need disclosure in the schedule for assets and liabilities above certain income levels. Check with your CA.
Written by the Ticgetz Gold team and reviewed before publication. It is general information about how digital gold works in India, not investment or tax advice, and rules change — check the date above. Rates quoted anywhere on this site are live market rates and are not a forecast.