New GST on Diamonds in India: What You Should Know Before Buying
- 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.
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.
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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% |
Diamond Type
New GST Rate
Diamond Type
New GST Rate
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% |
Product Description
HSN Code
New GST Rate
Product Description
HSN Code
New GST Rate
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 |
Product/Service
HSN/SAC
New GST Rate
Remarks
Product/Service
HSN/SAC
New GST Rate
Remarks
Product/Service
HSN/SAC
New GST Rate
Remarks
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% |
Diamond Type
GST Rate
Diamond Type
GST Rate
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.
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HSN Code for Diamonds
Diamonds fall under HSN Code 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% |
Product Description
HSN Code
GST Rate
Product Description
HSN Code
GST Rate
These HSN codes are crucial for traders and retailers when issuing GST invoices 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% |
Product Type
GST Rate
Product Type
GST Rate
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 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.
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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.
