New GST on Silver in India: Ornaments, Coins, and Investment Bars
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.
Is Silver Taxable Under GST?
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).
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New GST Rate on Silver in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for silver and related products (no compensation cess).
New GST Rate on Silver Products
| 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 jeweller |
So, the gst for silver — regardless of form—is 3%, while making charges for jewellery may attract 5% GST if charged separately.
GST on Silver Jewellery and Ornaments
(Old GST Rates – Applicable Until 21st September)
| 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%.
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GST on Silver Bar and Investment Bullion
Silver bars purchased for investment or trade also attract 3% GST under the bullion category.
- This applies whether you’re buying from a jeweller, bullion dealer, or refiner
- Input Tax Credit (ITC) is allowed for registered traders buying bars for resale or manufacturing
So, the gst on silver bar is straightforward—3%, plus any applicable making/handling costs.
GST on Silver Coins
If you’re buying silver coins for gifting or religious use:
- GST is 3% under HSN Code 7114
- Applies even to engraved or decorative coins, as long as they aren’t legal tender
- Custom coins or puja items made of silver are also taxed at 3%
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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.
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
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What is the gst on silver in India?The GST on silver is 3%, whether in the form of jewellery, bar, coin, or raw silver.
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Is gst different for silver ornaments and silver bars?No. Both attract 3% GST. However, jewellery may include 5% GST on making charges if billed separately.
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Do silver coins also attract GST?Yes, silver coins that are not legal tender attract 3% GST under HSN 7114.
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Can jewellers claim Input Tax Credit on silver purchases?Yes, if registered under GST, they can claim ITC on silver purchases used for manufacturing and resale.
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Is there GST on old or used silver jewellery?If sold as a second-hand item by an unregistered individual, GST is not applicable. But dealers or resellers must charge GST on resale.