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GST on Jewellery India — Gold, Diamond & Making Charges

Updated: 3 June 2026  |  GST Act 2017  |  HSN Chapter 71

GST on gold jewellery = 3% on total bill (gold + making charges combined — no split). Diamond jewellery = 3%; cut/polished diamonds alone = 1.5%; rough diamonds = 0.25%. Silver, platinum, imitation jewellery — all 3%. Old gold exchange: GST applies on full value of new jewellery.
3%
Single GST rate of 3% on all gold, silver, platinum jewellery — including making charges.
Finished diamond jewellery = 3% (same HSN 7113). Unset cut diamonds = 1.5% (HSN 7102).

GST Rates on Jewellery and Precious Items

ItemHSN CodeGST RateNotes
Gold jewellery (finished)71133%Includes making charges
Silver jewellery (finished)71133%Same as gold
Platinum jewellery71133%All precious metal jewellery
Imitation / fashion jewellery71173%Costume jewellery
Cut and polished diamonds71021.5%Reduced in 2021
Rough diamonds71020.25%Uncut/unpolished
Lab-grown diamonds71041.5%Same as natural diamonds
Gold bars / coins71083%Bullion
Silver bars71063%Bullion
Natural pearls (unworked)71010%Exempt
Worked pearls / set in jewellery71133%When part of jewellery

GST on Gold Jewellery — Calculation Example

ComponentValueGST RateGST Amount
Gold (22k, 10g @ ₹8,500/g)₹85,0003% on total₹3,000
Making charges (15% of gold)₹12,750
Total Invoice Value₹97,750——
GST @ 3%—3%₹2,932.50
Total Payable——₹1,00,682.50

Frequently Asked Questions

What is the GST rate on gold jewellery in India?
GST on gold jewellery is 3% on the total invoice value — this includes both the gold value and making charges. The 3% GST applies as a combined rate on the entire transaction value. There is no separate GST on making charges — it is treated as a single composite supply (goods + service). So on a ₹1 lakh gold jewellery bill (gold ₹85K + making charges ₹15K), total GST = 3% × ₹1L = ₹3,000. Additionally, Basic Customs Duty (15%) + 3% GST on imported gold bars make imported gold costlier.
What is the GST rate on diamond jewellery?
Cut and polished diamonds: 1.5% GST (reduced from 3% in 2021 to boost exports). Rough diamonds (uncut): 0.25% GST. Diamond jewellery (finished pieces): 3% GST — same as gold jewellery because the finished piece is classified as jewellery (HSN 7113), not as diamonds. So a diamond ring: 3% GST on total value. Lab-grown diamonds: 1.5% GST (same as natural cut diamonds). Colorless diamonds for industrial use: separate classification. Always check invoice — jewellers must show correct HSN code.
How is GST on old gold exchange calculated?
When you exchange old gold for new jewellery: You bring old gold (say ₹50,000 value) and pay ₹30,000 additional for new jewellery worth ₹80,000. GST is charged on the full value of new jewellery (₹80,000): GST = 3% × ₹80,000 = ₹2,400. The old gold exchange is treated as payment consideration — it does not reduce the GST base. For registered jewellers buying old gold from unregistered individuals: No GST on purchase of old gold; GST only on sale of new jewellery. Valuation for GST: based on sale price of new item.
Can jewellers claim Input Tax Credit on GST paid?
GST-registered jewellers CAN claim ITC on: Gold/silver/platinum purchased from registered suppliers; Workshop/artisan charges (if 18% GST paid); Making charges paid to job workers (5% if through organized) Manufacturing overhead. However, jewellers selling to end consumers (B2C): practical ITC utilization depends on output GST. ITC accumulation issue: If outgoing rate (3%) is lower than incoming (18% on machinery, 28% on lab equipment), excess ITC can be refunded. Gold purchased from unregistered dealers (most common in India): No ITC available as no GST paid on purchase.
What is the GST on silver jewellery and platinum?
Silver jewellery: 3% GST (same as gold). Pure silver (non-jewellery): 3%. Silver articles/silverware: 3%. Platinum jewellery: 3% GST. Imitation jewellery (artificial, fashion): 3% GST. Pearls (unworked natural): 0% GST; pearls (worked/set in jewellery): 3%. Coral (unworked): 0%; worked: 3%. Semi-precious stones: 0.25% (unworked), 3% (set in jewellery). Watches with precious metal bands: classified under watches (18%), not jewellery. The 3% rate applies uniformly to all precious metal jewellery under HSN chapter 71.

Related Pages

GST on Gold GST Rates GST Registration Input Tax Credit GST Invoice Format Sovereign Gold Bond Tax
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