GST on Silver in India (2026): Jewellery, Coins, Bars & Making Charges Explained
Quick Summary
- GST on silver in India is 3% across all forms — raw silver, jewellery, bars, bullion, and coins.
- Silver jewellery is taxed at 3% on total value, but making charges may attract 5% GST if billed separately.
- Silver bars and bullion are taxed at 3%, with Input Tax Credit available for registered traders.
- Silver coins (non-legal tender) are taxed at 3% under HSN 7114.
- No compensation cess applies to silver.
- GST is not applicable when individuals sell second-hand silver privately, but dealers must charge GST on resale.
The silver GST rate in India remains uniform at 3%, making taxation relatively simple compared to other precious metals. Whether you are buying ornaments, investment bars, or silver coins for gifting, understanding the applicable GST on silver helps you calculate the final cost accurately and ensure compliance.
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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
The GST structure for silver products remains under the 3% slab, while charges for jewellery may attract 5% GST if charged separately.
GST on Silver Products in India
| Type of Silver Product | HSN Code | GST Rate | Remarks |
|---|---|---|---|
| Raw silver (unrefined/unwrought) | 7106 | 3% | Industrial/refining use |
| Silver bars and bullion | 7106 | 3% | Investment-grade silver |
| Silver coins (non-legal tender) | 7114 | 3% | Gifting, puja, collection |
| Silver jewellery/ornaments | 7113 | 3% | Taxed on total value |
| Making charges (if separate) | – | 5% | Only if separately invoiced |
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 Making Charges
Silver jewellery attracts 3% GST on the total transaction value.
However, taxation differs based on billing method:
Case 1: Single Combined Invoice
If ornament value + making charges are combined into one price →
GST is charged at 3% on the total amount.
Case 2: Separate Making Charges
If making charges are shown separately:
- 3% GST on silver value
- 5% GST on making/labour charges
This may slightly increase the total tax amount payable.
GST on Silver Bars 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 bars is straightforward: 3%, plus any applicable making/handling costs.
GST on Silver Coins and Articles
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.
Input Tax Credit (ITC) on Silver
Registered jewellers and traders can:
- Claim ITC on silver purchased for resale or manufacturing
- Offset GST paid on purchases against output GST liability
However:
- Individuals selling old silver jewellery privately are not required to charge GST
- Dealers reselling second-hand silver must charge GST under applicable margin rules
How to Calculate GST on Silver in India
The GST rate on silver in India is 3%. If making charges are billed separately on silver jewellery, they attract 5% GST.
Quick Formula for GST on Silver
GST Amount = (Silver Value × 3%)
Final Price = Silver Value + GST
Example 1: Buying a Silver Bar (Investment Purchase)
Silver Bar Price = ₹50,000
GST Rate = 3%
GST Amount = (50,000 × 3) ÷ 100 = ₹1,500
Final Price = ₹50,000 + ₹1,500 = ₹51,500
So, you will pay ₹51,500 for the silver bar.
Example 2: Buying Silver Jewellery (Single Combined Invoice)
Silver Jewellery Price (including making) = ₹40,000
GST Rate = 3%
GST Amount = (40,000 × 3) ÷ 100 = ₹1,200
Final Price = ₹40,000 + ₹1,200 = ₹41,200
If the jeweller issues a single combined bill, GST is applied at 3% on the total amount.
Example 3: Silver Jewellery with Separate Making Charges
Silver Value = ₹35,000
Making Charges = ₹5,000
GST on Silver (3%) = (35,000 × 3%) = ₹1,050
GST on Making Charges (5%) = (5,000 × 5%) = ₹250
Total GST = ₹1,050 + ₹250 = ₹1,300
Final Price = ₹35,000 + ₹5,000 + ₹1,300 = ₹41,300
In this case, the total tax is slightly higher because making charges attract 5% GST when billed separately.
Conclusion
The GST on silver in India remains consistent at 3%, making it one of the simpler taxed commodities under GST. Whether purchasing jewellery, bullion, or coins, buyers benefit from uniform taxation without additional cess.
For businesses, proper Silver HSN code classification, invoicing structure, and ITC claims are essential to remain compliant and maintain accurate pricing.
