--- title: "New GST on Silver 2026: 3% Rate on Silver Ornaments, Bars" description: "New GST rate on silver in 2026 is 3% on silver jewellery, silver bars, ornaments and coins. Busy makes GST compliance easy with automatic rate application." canonical: "https://busy.in/gst-rates/silver/" author: "Apurva Maheshwari" published: "2025-04-30T06:50:34.000Z" category: "GST Rates" --- - The **silver gst rate** in India is generally **3%** for silver products based on their applicable HSN classification and nature of supply. - Silver jewellery is generally taxed at **3% GST on the total transaction value**, including making charges when they form part of the jewellery sale. Separate GST treatment may apply when making charges are supplied independently as a service. - Silver bars and bullion may attract **3% GST** under applicable classification. Input Tax Credit (ITC) availability depends on the eligibility conditions under GST provisions. - Silver articles and coins are classified based on their nature and applicable HSN code, which determines the applicable GST treatment. - Compensation Cess is not applicable to silver products. - GST applicability on second-hand silver transactions depends on the nature of supply and whether the seller is making a taxable supply under GST provisions. # GST on Silver in India (2026): Jewellery, Coins, Bars & Making Charges Explained The **silver gst rate** in India is generally **3%** for silver products based on the applicable HSN classification and nature of supply. Whether you are buying silver ornaments, investment bars, or silver coins, understanding the applicable **GST on silver** helps you calculate the final cost accurately and comply with applicable GST provisions. ![GST on Silver in India](https://busy-client.busy.in/media/Image-4.webp) ## **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**](https://busy.in/hsn/sub-chapter-7106/) (for unwrought silver and semi-manufactured forms) and [**HSN Code 7113**](https://busy.in/hsn/sub-chapter-7113/) (for jewellery and articles). **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## **New GST Rate on Silver** The GST structure for silver products generally attracts **3% GST** based on the applicable HSN classification and nature of supply. For silver jewellery, GST is generally charged at **3% on the total transaction value**, including making charges when they form part of the jewellery sale. Businesses should verify the **silver ornaments hsn code and gst rate** based on the type of silver jewellery and applicable HSN classification. ## **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 and other silver articles | Applicable HSN classification | 3%, where applicable | Classification depends on product type | | Silver jewellery/ornaments | 7113 | 3% | Taxed on total transaction value | | Making charges supplied separately | Applicable service classification | Applicable GST rate based on classification | Applies only when supplied independently | So, **GST on silver** products is generally **3%** based on the applicable classification, while separate services related to making charges are taxed according to their own GST classification. Live Demo Available Today ## Track Serial Numbers of High-Value Silver Items You Sell Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## **GST on Silver Jewellery and Making Charges** Silver jewellery attracts **3% GST on the total transaction value** when supplied as jewellery. However, the GST treatment depends on the nature of supply: ### **Case 1: Single Combined Invoice** If the ornament value and making charges are combined into one price: - GST is charged at **3% on the total transaction value**. ### **Case 2: Making Charges Shown Separately** If making charges are shown separately but are part of the silver jewellery supply: - GST is generally charged at **3% on the total transaction value**, including applicable making charges. If making charges are supplied independently as a separate service, the applicable GST rate depends on the service classification and relevant GST provisions. ## **GST on Silver Bars and Investment Bullion** Silver bars purchased for investment or trade generally attract **3% GST** under the applicable HSN classification. - This applies to silver bars supplied by jewellers, bullion dealers, or refiners, subject to applicable GST provisions. - Input Tax Credit (ITC) availability depends on the eligibility conditions under GST law and the nature of business use. Additional charges, if any, are treated separately based on their nature and applicable GST classification. ## **GST on Silver Coins and Articles** GST treatment for silver coins and articles depends on the applicable HSN classification and nature of the product. - Silver coins and silver articles may attract **3% GST** where covered under the applicable classification. - Decorative, engraved, commemorative, or religious silver items should be classified based on their product description and applicable GST provisions. ## **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 products depends on the applicable HSN classification and nature of supply. Silver products generally attract **3% GST** under applicable GST provisions. For silver jewellery, GST is generally charged at **3% on the total transaction value**, including making charges when they form part of the jewellery sale. ### **Quick Formula for GST on Silver** **GST Amount = (Taxable Value × Applicable GST Rate) ÷ 100** **Final Price = Taxable Value + GST Amount** ### **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 transaction value. ### **Example 3: Silver Jewellery with Making Charges Included** Silver Value = ₹35,000 Making Charges = ₹5,000 Total Jewellery Value = ₹40,000 GST Rate = **3%** **GST Amount = (40,000 × 3) ÷ 100 = ₹1,200** **Final Price = ₹40,000 + ₹1,200 = ₹41,200** When making charges form part of the silver jewellery supply, GST is generally calculated at **3% on the total transaction value**. ## **Conclusion** **GST on silver** in India is generally applicable at **3%** for silver products based on the applicable HSN classification and nature of supply. Whether purchasing jewellery, bullion, or coins, buyers should consider the applicable GST treatment for the specific product category. Silver products do not attract Compensation Cess. For businesses, proper silver HSN code classification, invoicing structure, and ITC eligibility checks are essential to remain compliant and maintain accurate pricing. ## About the author **Apurva Maheshwari** 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 ### What is the GST rate on silver in India in 2026? The GST rate on silver products is generally **3%** based on the applicable HSN classification and nature of supply. Silver jewellery, bars, bullion, and other silver products may attract **3% GST** where covered under the applicable GST provisions. Businesses and buyers should verify the applicable GST treatment based on the specific silver product category and classification. ### Is GST different for silver jewellery and silver bars? No. Both silver jewellery and silver bars generally attract **3% GST** based on the applicable HSN classification. Making charges are also generally included in the jewellery value when GST is charged on the jewellery supply. Separate GST treatment may apply if making charges are supplied independently as a service. ### Do silver coins attract GST? Yes. Silver coins may attract **3% GST** based on their applicable HSN classification and nature of supply. The exact classification depends on whether the item is treated as a coin, article of precious metal, or another category under GST provisions. ### Is there any compensation cess on silver? No. Compensation cess does not apply to silver. ### 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. ### Can jewellers claim Input Tax Credit on silver purchases? Yes. Registered jewellers can claim ITC on silver used for manufacturing and resale. ### Is GST applicable on second-hand silver jewellery? If an individual sells old jewellery privately, GST is not applicable. 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