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 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.
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.
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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 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 |
Type of Silver Product
HSN Code
GST Rate
Remarks
Type of Silver Product
HSN Code
GST Rate
Remarks
Type of Silver Product
HSN Code
GST Rate
Remarks
Type of Silver Product
HSN Code
GST Rate
Remarks
Type of Silver Product
HSN Code
GST Rate
Remarks
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.
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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.
