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GST on Silver: 3% on Bars, Coins & Jewellery
GST on silver is 3% of the value for silver bars, coins, articles and jewellery. Within a state it is charged as 1.5% CGST + 1.5% SGST, and on an inter-State sale as 3% IGST. GST 2.0 kept silver at 3%.
Applicable GST Rate
Silver bars, coins, articles and silver jewellery
Silver GST rate chart
| Item or service | HSN / SAC | GST |
|---|---|---|
| Silver bars, granules, unwrought or semi-manufactured silver | 7106 | 3% |
| Silver jewellery (anklets, chains, rings) | 7113 | 3% |
| Silver articles and utensils (silversmiths' wares) | 7114 | 3% |
| Silver coins | 7106 / 7118 | 3% |
| Job work on silver owned by someone else | SAC 9988 | 5% |
| Imitation or silver-plated base-metal jewellery | 7117 | 3% |
How GST on silver jewellery is calculated
When you buy finished silver jewellery or utensils, the sale is one supply of goods and the full invoice value, including any making charges, is taxed at 3%.
The 5% rate is for job work, where a silversmith makes or alters items from silver that belongs to someone else. Silver-plated or imitation jewellery falls under HSN 7117 instead, and it is also taxed at 3%.
Silver GST calculation example
Assume a pair of silver anklets priced at ₹20,000 including making charges (illustrative figure). GST at 3% = ₹600, or ₹300 CGST + ₹300 SGST within the same state. The total is ₹20,600.
For a 1 kg silver bar priced at ₹1,00,000 (illustrative), GST at 3% is ₹3,000.
GST on silver vs gold
Silver and gold carry the same 3% GST and the same CGST/SGST split. Both are outside the main GST 2.0 slabs of 5%, 18% and 40%. The difference for buyers is customs duty on imports and price, not GST.
A registered jeweller or silver trader can claim ITC of GST paid on silver bought for resale or manufacture. Individuals buying for personal use cannot.