Gold, silver and jewellery are taxed at 3% GST, and the September 2025 rate changes left that untouched. Here is what 3% applies to, how making charges and old-gold exchanges are treated, the HSN codes, and the PAN and hallmarking rules to know before you buy.
| 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.
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.
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.
This article is published by TaxQue (ARB FinTech LLP) for general informational, educational, and business guidance purposes only. Tax laws, GST rules, MCA circulars, and judicial precedents are subject to frequent statutory revisions. This content does not constitute formal individualized tax, accounting, or legal counsel.
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