GST on gold, silver and platinum jewellery is 3% (HSN 7113). On a ready-made piece, that 3% covers the metal and the making charges as a single composite supply. If your jeweller shows making charges as a separate line, they carry 5% GST (job work, SAC 9988) while the metal stays at 3%. Diamond jewellery is 3%; loose cut & polished diamonds are 1.5% and rough diamonds 0.25%. These rates were not changed by GST 2.0 (effective 22 September 2025).
GST Rates on Jewellery & Precious Items
Every common jewellery and precious-metal item, its HSN code and GST rate under the current rate schedule.
| Item | HSN | GST Rate | Notes |
|---|---|---|---|
| Gold jewellery (finished) | 7113 | 3% | Composite — includes making charges |
| Silver jewellery (finished) | 7113 | 3% | Same as gold |
| Platinum jewellery | 7113 | 3% | All precious-metal jewellery |
| Making charges (billed separately) | 9988 | 5% | Job-work / labour service |
| Imitation / fashion jewellery | 7117 | 3% | Costume jewellery |
| Cut & polished diamonds (loose) | 7102 | 1.5% | Reduced from 3% in 2021 |
| Rough (uncut) diamonds | 7102 | 0.25% | Unworked |
| Lab-grown diamonds (loose) | 7104 | 1.5% | Same as natural cut diamonds |
| Finished diamond jewellery | 7113 | 3% | Taxed as jewellery, not as diamonds |
| Gold bars / coins (bullion) | 7108 | 3% | Investment gold |
| Silver bars (bullion) | 7106 | 3% | Investment silver |
| Natural pearls (unworked) | 7101 | 0% | Exempt until worked / set |
HSN Chapter 71. Jewellery rates were retained under the GST 2.0 two-slab reform effective 22 September 2025 — precious metals stay outside the 5%/18%/40% goods slabs. Confirm on the official GST portal before invoicing.
GST on Making Charges — 3% or 5%?
This is the single most-searched jewellery-GST question, and the answer depends entirely on how the jeweller structures the invoice.
Composite supply (most bills)
- Ready-made ornament sold as one item
- Making charges bundled into the price
- 3% GST on the full invoice value
- Simplest — what most retail buyers see
- Metal is the principal supply
Making charges billed separately
- Making / labour shown as a distinct line
- Treated as job-work service (SAC 9988)
- 5% GST on that making-charge amount
- Metal portion still taxed at 3%
- Common when you supply your own gold
When craftsmanship is billed as a separate service — or when you bring your own gold and pay only for making — it is a supply of job work at 5% under SAC 9988, not a composite jewellery sale. On a normal ready-made purchase where making is baked into the price, the whole bill is one composite supply at 3%.
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How GST Adds Up on a Gold Purchase
A ₹1,00,000 gold ornament (metal ₹85,000 + making ₹15,000), billed two different ways:
3% Composite bill
3% + 5% Split bill
The difference is small for the buyer but matters for the jeweller's input-tax credit and invoicing, because job work carried a 5% output while the metal moves at 3%.
Ask for the HSN codes on your invoice. A genuine jewellery bill shows HSN 7113 at 3%; a separate making-charge line should show SAC 9988 at 5%. A bill with no HSN, or 18% on the whole value, is a red flag worth questioning.
GST on Old Gold Exchange
When you exchange old gold for a new ornament, GST is charged on the full value of the new jewellery — the old gold is treated as part-payment (consideration), it does not reduce the GST base.
- 1You bring old goldSay ₹50,000 in value
- 2JewellerValues new piece at ₹80,000
- 3GST charged3% on ₹80,000 = ₹2,400
- 4You settleOld gold + ₹30,000 top-up
- A registered jeweller buying old gold from an unregistered individual pays no GST on that purchase — GST applies only when the new jewellery is sold.
- The old-gold value is not netted off the taxable value of the new ornament.
- Purely selling your own old gold back to a jeweller (not exchanging) is generally outside GST for an individual.
Input Tax Credit for Jewellers
| Input | ITC? | Reason |
|---|---|---|
| Gold/silver from a registered supplier | Yes | 3% input credit against output |
| Job work / making (SAC 9988) at 5% | Yes | Business input — credit available |
| Old gold bought from unregistered individuals | No | No GST paid — nothing to credit |
| Machinery / lab equipment (18%) | Yes | Can build up as excess ITC |
Where inputs (5%/18%) exceed the 3% output rate, ITC can accumulate — an inverted-duty position that may be refundable. See our blocked-credit and ITC guides.
Running a jewellery business? Get your ITC, HSN classification and returns handled.
Talk to a GST Expert →- Rates & notifications: gst.gov.in
- CBIC rate finder: cbic-gst.gov.in
- Jewellery: HSN 7113 · Diamonds: HSN 7102 · Job work: SAC 9988
- GST 2.0 rate rationalisation — 56th GST Council, effective 22 September 2025
Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position with the official source before you act on it.