Side by side
| Physical (jewellery, coins, bars) | Digital gold | |
|---|---|---|
| GST when you buy | 3% | 3% |
| Making charges | Yes on jewellery; little on coins and bars | None |
| Smallest amount | A coin, usually a gram or more | As little as ₹1 on many apps |
| Purity check | Hallmark with a 6-digit HUID | The platform's word and its vault audits |
| Storage and safety | Your locker or home | Held in a vault for you; check who the custodian and trustee are |
| Regulated by SEBI or the RBI? | Hallmarking by BIS | No |
| Selling | At a jeweller, often below the market rate | On the app, at the platform's sell price |
| Tax when you sell | 12.5% after 24 months, slab rate before | 12.5% after 24 months, slab rate before |
Where digital gold wins
- You can buy small amounts regularly, with no making charges.
- No storage worries, and no purity questions at the shop counter.
Where physical gold wins
- You hold it yourself: no platform has to stay in business.
- Jewellery can be worn. Hallmarking gives a checkable purity mark.
The regulation gap
Digital gold isn't a security, so SEBI doesn't regulate it. In 2021, after a letter from SEBI, NSE told stockbrokers to stop selling it. If a platform fails, there's no regulator to turn to. Read who holds the gold, who audits it, and how long you can keep it.
Want gold without these trade-offs?
Gold ETFs and gold mutual funds are regulated by SEBI and have no GST. Compare all the options in the best way to buy gold.
This is a comparison, not advice on what to buy.
Common questions
Is digital gold better than physical gold?
Neither is better for everyone. Digital gold has no making charges and allows small amounts, but isn't regulated. Physical gold you hold yourself, but jewellery has making charges.
Is digital gold regulated in India?
No. It isn't regulated by SEBI or the RBI, and since 2021 stockbrokers haven't been allowed to sell it.
Is digital gold taxed differently from physical gold?
No. Both are taxed at 12.5% on the gain after 24 months, or at your slab rate before.
Is GST charged on digital gold?
Yes, 3% when you buy, the same as physical gold.
Two ways to sort this
Do it yourself
- Decide if you want to wear it or hold it as an investment.
- Compare the extra costs: making charges, GST, the spread.
- For digital gold, find the custodian and trustee.
- Keep purchase records for tax when you sell.
Let an expert do it
We report gold you sell, physical or digital, correctly in your return.
The first chat is freeWork it out for yourself
- SGB vs digital gold: Gold bonds or digital gold, after tax.
- Gold tax: Tax when you sell or exchange gold jewellery, coins or digital gold.
- Capital gains: Tax on shares, mutual funds, gold and property you sold.
Compare digital gold with gold bonds, after tax.
Open the gold comparison calculatorSources
- SEBI and NSE stop brokers selling digital gold (August 2021), MediaNama
- Sale of gold jewellery without the 6-digit HUID not permitted after 31 March 2023, Press Information Bureau
- Tax rules for salaried individuals, AY 2026-27, Income Tax Department
This guide explains the rules in general. For your own situation, .