New GST on Diamonds in India: What You Should Know Before Buying
- The diamond GST rate in India depends on the type of diamond supplied.
- Rough diamonds attract 0.25% GST, while cut and polished diamonds attract 1.5% GST under the applicable GST classification.
- Diamond jewellery, including making charges when billed together, attracts 3% GST.
- Diamonds are generally classified under HSN 7102 for GST purposes. The applicable rate depends on the type of diamond supplied.
- GST-registered businesses may claim eligible Input Tax Credit on diamond purchases used for taxable business purposes, subject to GST conditions.
- Export of diamonds is treated as a zero-rated supply, allowing eligible exporters to claim applicable GST benefits.
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) 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.
Bill Diamond Exports in Multiple Currencies Without Confusion
Join our guided walkthrough to see how BUSY can transform your business operations.
GST Rate on Diamonds in India
There was no separate GST rate change for diamonds on 22 September 2025. The applicable GST rates for diamonds continue based on their classification.
| Diamond Type | GST Rate From 22 Sep 2025 | Rate Before 22 Sep 2025 |
|---|---|---|
| Rough diamonds | 0.25% | 0.25% |
| Cut and polished diamonds (loose) | 1.5% | 1.5% |
Diamond Type
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Diamond Type
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Note: The GST rate depends on the type and classification of diamond supplied. Diamond jewellery is taxed separately and generally attracts 3% GST on the total transaction value, including making charges when applicable.
GST Rate on Diamond Jewellery & Making Charges
| Product/Service | HSN/SAC | GST Rate From 22 Sep 2025 | Rate Before 22 Sep 2025 | Remarks |
|---|---|---|---|---|
| Diamond jewellery (articles of precious metal studded with diamonds) | HSN 7113 | 3% | 3% | Retail supply of finished jewellery |
| Jewellery making charges when included in the jewellery invoice | HSN 7113 | 3% | 3% | Treated as part of the composite supply of jewellery |
| Job work related to diamonds (cutting/polishing) billed to a registered person | SAC 9988 | 1.5% | 1.5% | Manufacturing service on physical inputs owned by another person |
Product/Service
HSN/SAC
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Remarks
Product/Service
HSN/SAC
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Remarks
Product/Service
HSN/SAC
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Remarks
Note: If making charges are included in the same invoice as the jewellery supply, the entire supply follows the 3% GST rate applicable to jewellery. Separate job work services for cutting or polishing diamonds supplied to a registered principal are taxed according to the applicable SAC classification.
Track Diamond Trader-Wise Outstanding Balances Automatically
* No credit card required
HSN Code for Diamonds
Diamonds are classified under HSN Code 7102, which includes rough, industrial, and cut or polished diamonds. The applicable GST rate depends on the type of diamond supplied.
| Product Description | HSN Code |
|---|---|
| Rough diamonds | 7102 |
| Polished / cut diamonds | 7102 |
Product Description
HSN Code
Product Description
HSN Code
These HSN codes help diamond traders and retailers issue GST-compliant invoices and maintain accurate tax records.
GST Calculation on Diamonds
GST calculation on diamonds depends on the type of diamond supplied. Since the GST rates remained unchanged after 22 September 2025, the same calculation applies before and after the change.
Example 1: Cut and polished diamond
Diamond value: ₹5,00,000
GST @ 1.5%: ₹7,500
Total price: ₹5,07,500
Example 2: Rough diamond
Diamond value: ₹10,00,000
GST @ 0.25%: ₹2,500
Total price: ₹10,02,500
Input Tax Credit (ITC) on Diamonds
For Businesses:
If you’re a jewellery manufacturer or diamond trader:
- You can claim Input Tax Credit 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
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 while keeping taxation transparent and consistent.
