What is the GST Rate on Silver in India?
AuthorMehul Jagwani
Reviewed ByCA Ajay Savani
Calculating GST on silver can be confusing because traditional GST slabs do not apply. Many new silver traders and jewellers struggle with this calculation. To help you understand, we will explain how GST is applied to silver in detail.
The Exact GST on Silver in India
As of Feb 2026, the GST rate for silver is 3% in India. The 3% GST applies to all types of silver that are commonly used by consumers and businesses alike, which includes:
- Raw silver in bars, ingots and granules
- Silver coins
- Silver jewelry and ornaments
- Silver items and utensils
This 3% rate is applicable under the HSN code 7106, which includes all silver regardless of whether it has gold or platinum plating, in all forms (including unwrought, semi-manufactured, or in powdered form).
HSN Codes for Silver: A Quick Reference
If you are a business owner involved in silver trading or the ornament business, knowing their HSN code is important. Applying the wrong HSN code in an invoice may trigger notices.
| Silver Items | HSN/SAC Code | GST Rate |
| Silver unwrought or in semi-manufactured forms | 7106 | 3% |
| Silver powder | 71061000 | 3% |
| Unwrought Silver | 710691 | 3% |
| Other Unwrought Silver | 71069100 | 3% |
| Silver grains | 71069110 | 3% |
| Other forms of silver | 71069190 | 3% |
| Semi-manufactured silver | 710692 | 3% |
| Sheets, Plates, Strips, Tubes and Pipes | 71069210 | 3% |
| Silver Bar | 71069220 | 3% |
| Other semi-manufactured silver | 71069290 | 3% |
| Making charges on silver jewellery | 9988 | 5% |
Also, You can find all HSN/SAC codes here.
GST Rate on Silver Jewellery
Some businesses think handcrafted silver jewellery is exempt from GST, but this is not so.
3% GST is applicable on all silver jewellery, regardless of whether it is a simple silver ring or a silver necklace with intricate designs. The craftsmanship of the item does not affect the GST on the silver.
However, there is another twist to consider. When you pay making charges, 5% GST is applicable on them. Therefore, your invoice could consist of two separate GST charges:
- 3% of the price of the silver
- 5% of the making charge
Most businesses don’t know they have to charge two different GST rates, but this is how it works.
Example: Suppose you buy a silver necklace worth ₹10,000. The jeweller charges ₹1,000 as making charges.
- GST on silver (3% of ₹10,000) = ₹300
- GST on making charge (5% of ₹1,000) = ₹50
- Total GST = ₹350
Therefore, the total cost of the silver anklet would be ₹11,350.
A Quick Comparison Between GST Rates for Silver and Gold
The GST rates for silver and gold are the same: 3%. Likewise, the GST rates for making charges on both silver and gold jewellery are also the same — 5% GST for both.
Therefore, in terms of GST rates, silver and gold are treated the same; the only difference is the current market price, which ultimately determines how much GST you pay with respect to the price of the metal.
Also, read and understand GST on Gold in depth.
GST on Silver in Investment Form
As silver prices have gained exponentially in the past couple of months, it has become a popular investment instrument among younger and high-net-worth individuals (HNIs). The following are two means of investment in silver and their GST rates:
- Physical silver bars: Attracts 3% GST.
- Silver ETFs: ETFs are financial products that are traded on exchanges like BSE (Bombay Stock Exchange) or NSE (National Stock Exchange). Since you are not purchasing physical silver, GST doesn't directly apply to your ETF investments.
GST Rate on Silver and How It Affects Jewellers & Businesses
This is how GST affects a jewellery business if it is registered under GST:
Input Tax Credit (ITC):
When a jeweller buys raw silver from a vendor, they pay 3% GST. They can claim GST as an Input Tax Credit (ITC) and use it as a credit against the GST they pay.
File GST Returns:
Jewellers have to submit their silver sales data in GSTR-1 and pay their net GST liability via GSTR-3B. If all of this seems confusing, this is exactly what GST filing software like Munim was designed to make easier.
Closing Notes
We hope that after reading this blog, you understand GST on silver properly. If you are a silver jeweller and are looking to simplify GST compliance, we recommend that you try Munim GST Return Filing software. It is designed to offload the compliance burden from your shoulders so that you can focus on growing your business.
Frequently Asked Questions on Silver
1. Is GST applicable to silver?
Yes, GST is applicable on Silver @ 3%
2. How much GST on silver?
3% GST is applicable on Silver. If you are purchasing silver jewellery, 5% GST is applicable on its making charges separately.
3. How much GST is applicable on gold and silver?
3% GST is applicable on Gold and Silver both.
4. How to invest in silver?
You can invest in silver by buying it in physical form, or an ETF is also an option.
5. What is sterling silver?
Sterling silver is a silver with 92.5% purity.
6. What is 925 silver?
‘925’ signifies the purity of silver. It means the silver is 92.5% pure. The remaining 7.5% consists of other metals.
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