GST rates on gold and silver
| Item | HSN | GST |
|---|---|---|
Gold: bars, biscuits, coins | 7108 | 3% |
Silver: bars and coins | 7106 | 3% |
Gold, silver or platinum jewellery | 7113 | 3% |
Gold and silver articles, e.g. silverware | 7114 | 3% |
Diamond and gem-set jewellery | 7113 | 3% on the full value |
Imitation jewellery | 7117 | 3% |
The 3% is split as 1.5% CGST + 1.5% SGST within a state, or 3% IGST between states. The GST Council's September 2025 rationalisation did not change these rates.
Loose diamonds and precious stones (HSN 7102 and 7103) have their own, much lower special rates. If you're buying stones rather than jewellery, check the rate for the exact HSN on the bill.
Making charges: 3% or 5%?
When you buy a piece of jewellery, the metal, stones and making charges together are one sale of jewellery. The 3% jewellery rate applies to the whole bill, making charges included.
Example: a gold chain at ₹90,000 metal value plus ₹10,000 making charges is a ₹1,00,000 jewellery sale. GST is 3% of ₹1,00,000, which is ₹3,000.
The picture is different when you give your own gold to a jeweller only to make or repair a piece. That is a job-work service, taxed at the job-work rate on the making charge alone. If your bill shows a separate rate on making charges for jewellery you bought outright, ask the jeweller to explain it.
Exchanging or selling old gold
- Selling old jewellery to a jeweller as an individual: no GST, because you are not selling in the course of a business.
- Exchanging old gold for new jewellery: the new piece is a taxable sale at 3%. Ask the jeweller to show the old-gold value and the GST calculation separately on the invoice, so you can check it.
Rules to know before you buy
- Hallmark with HUID: gold jewellery sold by jewellers must carry a BIS hallmark with a 6-character HUID. Check it on the BIS CARE app.
- PAN: you must give your PAN for jewellery or bullion purchases above ₹2 lakh.
- Cash limit: no one can accept ₹2 lakh or more in cash for a single purchase, so larger buys must be paid by bank transfer, card or UPI.
- Keep the GST invoice. It is your proof of purchase cost when you later sell and work out capital gains.
For jewellers: compliance in brief
Jewellers charge 3% on sales and can claim input tax credit on purchases of gold, stones and services. Jewellery and precious metals are exempt from e-way bills, so your invoices are the main record of every movement of stock. Turnover crosses the registration limit quickly in this trade: the limit for goods is ₹40 lakh in most states.
TaxQue handles GST registration and monthly GST return filing for jewellery businesses.
