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.
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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.
Gold HSN Code Classification and GST Rates
Here are some commonly used HSN codes and GST rates for this category
Section Classification
| Section Field | Section Value |
|---|---|
| Section No | 14 |
| Section Title | Guide to HSN Section 14 |
| Section Description | NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PRECIOUS STONES, PRECIOUS METALS CLAD WITH PRECIOUS METAL AND ARTICLES THEREOF; IMITATION JEWELLERY; COIN |
Section Field
Section Value
Section Field
Section Value
Section Field
Section Value
Chapter Classification
| Chapter Field | Chapter Value |
|---|---|
| Chapter No | 71 |
| Chapter Title | Natural Pearls & Metals |
| Chapter Description | Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin |
Chapter Field
Chapter Value
Chapter Field
Chapter Value
Chapter Field
Chapter Value
4 Digit HSN Code Classification
8 Digit HSN Code Classification
* GST rates may vary based on the latest GST notifications
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.
