BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
Silver has always been a precious metal in Indian households—used for jewellery, gifting, religious items, and even investment purposes. But whether you’re buying silver ornaments, bars, or coins, it’s important to understand how GST affects the final price.
Let’s break down the gst on silver in India, covering ornaments, raw silver, silver bars, and more.
Yes. Silver is a taxable good under the GST regime, and the applicable GST rate depends on the form and purpose of the silver being sold—whether it’s raw, processed, crafted as ornaments, or sold as bullion.
Silver falls under HSN Code 7106 (for unwrought silver and semi-manufactured forms) and HSN Code 7113 (for jewellery and articles).
Get a Free Trial – Best Accounting Software For Small Business
| Type of Silver Product | HSN Code | GST Rate | Comments |
|---|---|---|---|
| Raw silver (unrefined/unwrought) | 7106 | 3% | For industrial or refining use |
| Silver bars and bullion | 7106 | 3% | Considered as investment-grade silver |
| Silver coins (non-legal tender) | 7114 | 3% | Used for gifts, puja, or collection |
| Silver ornaments/jewellery | 7113 | 3% | Taxed on total value (including making) |
| Making charges on silver jewellery | – | 5% | If billed separately by jewellere |
So, the gst for silver — regardless of form—is 3%, while making charges for jewellery may attract 5% GST if charged separately.
| Component | GST Rate |
|---|---|
| Silver ornament value | 3% |
| Making/labour charges | 5% (if separate) |
If the jewellery is billed as a single price, Goods and Services Tax (GST) is charged on the total amount at 3%. If making charges are shown separately, they attract 5% GST, increasing the total tax amount.
Pro Tip: For lower tax, some buyers prefer a combined invoice where the total price is taxed at 3%.
Get a Free Trial – Best Accounting Software For Small Business
Silver bars purchased for investment or trade also attract 3% GST under the bullion category.
So, the gst on silver bar is straightforward—3%, plus any applicable making/handling costs.
If you’re buying silver coins for gifting or religious use:
Explore a Free Demo of – Best Inventory Management Software For Small Business
Whether you’re a silver investor, a jewellery buyer, or a bullion trader, knowing the correct gst on silver ensures you pay (or charge) the right tax and avoid compliance issues. With a consistent 3% GST rate, silver remains a transparent and regulated part of India’s precious metals market.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.