--- title: "New GST on Diamond 2026: 0.25% / 3% Rate on Diamond, Jewellery" description: "New GST rate on diamonds in 2026 is 0.25% on rough and 3% on polished diamond items. Get GST-ready with Busy and apply the correct rate on every invoice." canonical: "https://busy.in/gst-rates/diamond/" author: "Apurva Maheshwari" published: "2025-04-24T10:44:46.000Z" category: "GST Rates" --- - Rough diamonds in India have a GST rate of 0.25%, while cut and polished diamonds have a rate of 1.5%. - Diamond jewellery, including making charges if billed together, is taxed at a 3% GST rate. - The HSN code for both rough and polished diamonds is 7102, essential for invoicing and tax returns. - Businesses can claim Input Tax Credit on GST paid for diamond purchases, but individual buyers cannot. - Exports of diamonds are zero-rated, allowing exporters to claim GST refunds, aiding competitiveness. # New GST on Diamonds in India: What You Should Know Before Buying Diamonds are a symbol of luxury, beauty, and wealth. Whether you’re buying them for investment or adornment, understanding the taxes involved is crucial—especially under the [**Goods and Services Tax (GST)**](https://busy.in/gst/) system. In this blog, we explore the **GST on diamonds**, applicable HSN codes, tax rates, and how it affects both buyers and businesses in India. ## New GST Rate on Diamonds There was no change in GST rates on diamonds from 22 Sep 2025. The current GST rates for diamonds continue as follows. | Diamond Type | New GST Rate | | --- | --- | | Rough diamonds | 0.25% | | Cut & polished diamonds (loose) | 1.5% | Note: The 1.5% rate on cut & polished diamonds has applied since 18 Jul 2022. Rough diamonds remain at 0.25%. | Product Description | HSN Code | New GST Rate | | --- | --- | --- | | Rough diamonds | 7102 | 0.25% | | Cut & polished diamonds (loose, not mounted/set) | 7102 | 1.5% | Classify loose diamonds (worked or not, but not mounted or set) under HSN 7102. Jewellery/articles are classified separately under Chapter 71. ## New GST on Diamond Jewellery & Making | Product/Service | HSN/SAC | New GST Rate | Remarks | | --- | --- | --- | --- | | Diamond jewellery (articles of precious metal studded with diamonds) | HSN 7113 | 3% | Retail supply of finished jewellery | | Jewellery “making charges” when part of the retail invoice | HSN 7113 | 3% | Forms part of the composite supply of jewellery | | Job work in relation to diamonds (cutting/polishing) billed to a registered person | SAC 9988 | 1.5% | Manufacturing services on physical inputs (diamonds) owned by others | **Tip:** If “making” is billed on the same invoice as jewellery, it follows the jewellery’s 3% rate as a composite supply. Separate _job work_ services in relation to diamonds supplied to a registered principal are taxed at **1.5%**. ## **Old GST Rate on Diamonds** ### **(GST Rates Applicable Before 22nd September 2025)** As of 2025, rough and polished diamonds were taxed under two different slabs: | Diamond Type | GST Rate | | --- | --- | | Rough Diamonds | 0.25% | | Cut & polished diamonds | 1.5% | These GST rates continued unchanged from 22 September 2025. This low GST structure is designed to support India’s gem and jewellery industry while keeping pricing transparent for domestic buyers. Live Demo Available Today ## Track Diamond Trader-Wise Outstanding Balances Automatically Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## HSN Code for Diamonds Diamonds fall under [**HSN Code 7102**](https://busy.in/hsn/sub-chapter-7102/) , which includes rough, industrial, and cut or polished diamonds. | Product Description | HSN Code | GST Rate | | --- | --- | --- | | Rough Diamonds | 7102 | 0.25% | | Polished / Cut Diamonds | 7102 | 1.5% | These [**HSN codes**](https://busy.in/hsn/) are crucial for traders and retailers when issuing [**GST invoices**](https://busy.in/gst/a-guide-to-invoicing-under-gst/) and filing returns. ## **Old GST Calculation on Diamonds** Let’s say you’re buying a polished diamond worth ₹5,00,000: - GST @1.5% = ₹7,500 - Total Price = ₹5,07,500 For a rough diamond worth ₹10,00,000: - GST @0.25% = ₹2,500 - Total Price = ₹10,02,500 These GST rates remained unchanged after 22 September 2025. ## **Old GST on Diamond Jewellery** Jewellery that contains diamonds falls under a different category altogether: | Product Type | GST Rate | | --- | --- | | Diamond Jewellery | 3% | | Making Charges forming part of jewellery sale | 3% | So if you’re buying a diamond ring priced at ₹1,00,000 with ₹10,000 making charges: - Taxable value = ₹1,10,000 - GST @3% = ₹3,300 - Total Price = ₹1,13,300 ## Secondary Keyword Highlights: - **The gst on diamond rate is significantly lower than on gold or other luxury items.** - **Diamond gst rate** for polished stones is currently at 1.5%, making it favorable for buyers and traders. - If you’re wondering **what is the gst on diamonds**, it depends on whether the diamond is rough (0.25%) or polished (1.5%). - For exporters, the **gst on diamond exports** can be claimed as a refund under the zero-rated supply provisions. ## Input Tax Credit (ITC) on Diamonds **For Businesses:** If you’re a jewellery manufacturer or diamond trader: - You can [**claim Input Tax Credit**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) on GST paid during purchase. - This ITC can be adjusted against your output tax liability during sale. **For Consumers:** You **cannot claim ITC** as an individual buyer. The tax becomes part of your purchase cost. **Get a Free Trial –** [**Best GST Accounting Software For Small Business**](https://busy.in/accounting-software/gst-accounting/) ## **GST on Import and Export of Diamonds** - Imports: Attract Basic Customs Duty (BCD) + IGST at applicable rates (0.25% or 1.5%). - Exports: Treated as zero-rated supplies. Exporters can export under LUT (Letter of Undertaking) without payment of IGST and claim a refund of eligible unutilised ITC. This helps exporters remain competitive in the global diamond market. ## Final Thoughts Understanding the **gst on diamond** purchases helps buyers make smarter investments and ensures businesses maintain compliance. With the relatively low **diamond gst rate**, India continues to support its thriving [**gem and jewellery sector**](https://busy.in/accounting-software/jewellery-shop/) while keeping taxation transparent and consistent. ## About the author **Apurva Maheshwari** I am a Chartered Accountant with 5 years of experience specializing in GST, income tax, and HSN code classification. I help businesses with GST compliance, tax planning, and financial advisory, ensuring they meet regulatory requirements while optimizing their tax strategies. I aim to simplify GST filings, income tax laws, and HSN code classifications, helping professionals and business owners stay informed and compliant. ## Frequently asked questions ### What is the GST on rough diamonds? Rough diamonds are taxed at just **0.25%** under GST. ### How much GST is charged on polished or cut diamonds? **1.5% GST** is applicable on polished or cut diamonds. ### Is GST applicable on diamond jewellery? Yes. Diamond jewellery generally attracts 3% GST on the total transaction value, including making charges, even if the making charges are shown separately. ### Can diamond traders claim Input Tax Credit? Yes, registered businesses can claim ITC on GST paid on raw materials and supplies. ### What is the HSN code for diamonds? The HSN code for both rough and polished diamonds is **7102**. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)