Gold HSN Code for GST Filing
Gold is widely traded in the form of bullion, coins and jewellery. It is purchased by households, jewellers, investors and businesses. Because values are high even a small error in the gold HSN code or GST rate can lead to serious mismatch in returns.
This guide explains the main HSN codes for gold and gold jewellery, how GST applies on different forms of gold and how to use these codes correctly in invoices and GST returns.
What is the HSN Code for Gold and Gold Jewelry?
Gold and gold jewellery are classified under Chapter 71 of the customs tariff. The HSN code changes based on whether the gold is in raw form such as bars and biscuits, or finished as jewellery or coins.
| HSN Code | Product name | Product description | GST rate |
|---|---|---|---|
| 7108 | Gold in unwrought form | Gold bars, biscuits and other unwrought forms of gold | 3% |
| 7113 | Articles of jewellery of precious metal | Gold jewellery such as chains, rings, bangles and earrings | 3% |
| 7114 | Goldsmith and silversmith wares | Gold plates, pooja articles and decorative items of precious metal | 3% |
| 7118 | Coins of precious metal | Gold coins supplied as investment or collectibles | 3% |
| 9988 | Job work on gold jewellery | Making charges and job work services related to gold jewellery | 5% |
How Does GST Apply to Gold Jewelry, Coins, and Bullion?
On the value of gold content in bullion, coins and jewellery GST is usually charged at 3%. In the case of manufactured jewellery the making charges collected by the jeweller are treated as a supply of service and are generally taxed at 5% under the relevant service code for job work.
When gold is imported customs duty and social welfare surcharge may also apply in addition to IGST. The total tax impact can therefore be significant and correct breakup of duties and GST in the invoice is very important for smooth input tax credit flow to registered buyers.
Why Are Gold Jewelry and Gold Coins Classified Separately Under HSN Code?
Gold bars, coins and jewellery serve different purposes and therefore have separate HSN codes. Bullion and coins are mainly treated as investment or raw material for jewellers while jewellery is a finished consumer product. Separate codes help tax authorities monitor movement of investment gold and finished ornaments more accurately.
Classifying gold coins and gold jewellery correctly also impacts valuation rules, place of supply and reporting requirements in GST returns. Using the correct HSN code helps avoid disputes around whether a transaction is treated as trading in bullion or sale of finished jewellery.
How to File Gold HSN Code Correctly for GST Returns?
Jewellers and bullion traders should maintain a clear item master where each product is mapped to the correct HSN code such as 7108 for bullion and 7113 for jewellery. All purchase and sales invoices should show this code along with the applicable GST rate on gold value and on making charges wherever applicable.
While filing GSTR returns ensure that outward supplies of bullion, coins and jewellery are reported in the HSN wise summary with correct taxable value and tax amount. Any export of gold products should also carry the right HSN code for seamless customs and GST processing.
Conclusion
Gold, gold coins and gold jewellery mainly fall under Chapter 71 with HSN codes like 7108, 7113 and 7118. GST on the gold value is usually 3% while making charges on jewellery may attract 5%. When businesses classify every product under the correct gold HSN code and apply the right GST rate they make accurate invoices, protect their input tax credit and reduce the risk of compliance issues.
I am a chartered accountant with over 14 years of experience. I understand income tax, GST, and balancing financial records. I analyze financial statements and tax codes effectively. However, I also have a passion for writing, which is different from working with numbers. Recently, I started writing articles and blog posts. My goal is to make finance easier for everyday people to understand.
Frequently Asked Questions
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What is the HSN code for gold?
Gold in unwrought form such as bars and biscuits is usually classified under HSN code 7108 while finished gold jewellery is classified under HSN code 7113 and gold coins fall under 7118.
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How does the GST rate apply to gold coins and jewelry?
On the gold content in coins and jewellery GST is generally charged at 3%. The making charges for jewellery are treated as a service and may attract 5% GST under the relevant service category.
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Are gold jewelry and gold coins classified under the same HSN code?
No. Gold jewellery is normally classified under HSN 7113 while gold coins are classified under HSN 7118. Bullion in the form of bars and biscuits is classified under HSN 7108.
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How do I file the gold HSN code correctly for GST returns?
Use the correct HSN code for each gold product in every invoice and ensure that outward supplies are reported in the HSN wise summary of GSTR returns with correct taxable value and tax amount.
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Does the GST rate for gold differ by form such as coins, jewelry or bullion?
The GST rate on the gold value is usually 3% for bullion, coins and jewellery. However making charges on jewellery and some service elements may be taxed at a different rate, typically 5%.