GST on silver is 3% for every form a buyer meets: silver bars and coins under 7106, silver jewellery such as payal and chains under 7113, and silver articles such as utensils and idols under 7114. The rate is split as 1.5% CGST and 1.5% SGST inside a state.
When a silversmith makes jewellery from silver the customer brings, the making charge is job work at 5%. This page explains the codes, how a silver bill is worked out, old silver exchange and the points that differ from gold. The jewellery hub is gold.
Silver: codes and GST rates
Item / HSN / GST- Silver bars and bullion3%Semi-manufactured silver
- Silver granules and powder3%Unwrought forms
- Silver coins3%Precious metal coins; some sellers use 7106
- Silver jewellery: payal, chains, rings3%Jewellery of silver
- Silver articles: utensils, idols, trays3%Silversmiths' wares
- Silver plated with gold3%Still silver for GST
- Making charges on customer's silver5%Job work on Chapter 71 goods
- Old silver bought from a person3%Seller is not liable if unregistered
Quick facts
HSN headings
7106 silver, 7113 jewellery, 7114 articlesGST rate
3% (1.5% CGST + 1.5% SGST)Schedule
IV of notification 9/2025-Central Tax (Rate)Making charges
5% when the customer supplies the silverDigits to print
4 digits up to Rs 5 crore turnover, 6 abovePurity
Does not change the rate
Gst on silver by product
| Item | HSN | GST |
|---|---|---|
| Silver bar, bullion | 7106 92 | 3% |
| Silver granules, grain | 7106 91 | 3% |
| Silver powder | 7106 10 | 3% |
| Silver coin | 7106 or 7118 | 3% |
| Silver payal, chain, ring, bangles | 7113 11 | 3% |
| Silver utensils, plates, glasses | 7114 11 | 3% |
| Silver idols and puja items | 7114 11 | 3% |
| Silver plated jewellery (base metal) | 7117 | 3% |
| Silver scrap | 7112 | 3% |
Silver jewellery hsn code and making charges
Silver ornaments are 7113 11 at 3%. When a jeweller sells ready silver jewellery, the price includes metal and making, and GST is 3% on the whole value. When a customer gives silver and pays only for making, the making charge is job work in relation to Chapter 71 goods, taxed at 5%. See job work.
Silver bullion and silver bar hsn code
Bullion dealers and refiners deal in bars, grains and coins, mostly between registered businesses. Silver bars and bullion are semi-manufactured silver under 7106 92 at 3%. Granules are 7106 91. A trader buying bars from a refiner and selling them to jewellers charges 3% at each stage and takes credit of the tax paid. Bullion moving between cities needs an e-way bill like any other goods, and dealers keep assay certificates with the bill so the purity and weight can be checked if the load is stopped.
Worked example of a silver bill
Silver jewellery sale inside the state: Silver payal 120 g, HSN 7113 11, value of silver and making Rs 12,000. CGST 1.5% Rs 180. SGST 1.5% Rs 180. Total Rs 12,360.
Old silver exchange
When a customer exchanges old silver for new, the jeweller buys the old silver from an unregistered person, which is not taxed in the customer's hands. The bill for the new piece carries 3% on its entire price; the old silver handed over counts as part payment and does not shrink the taxable value. Silver scrap traded between dealers is 7112 at 3%.
Silver plated and imitation items
Silver plated items of base metal are not silver; plated jewellery is 7117 at 3% and plated utensils are classified by their base metal, usually 18%. Silver coloured fashion jewellery is covered on the artificial jewellery page.
Silver rates here summarise Schedule IV and the job work entry in general terms. Exchange, refining and job work arrangements differ by case, so check the GST portal and ask a GST practitioner or chartered accountant about your trade.
Frequently asked questions
How much GST is charged on silver?
Silver, silver jewellery and silver articles are taxed at 3%.
What is the silver hsn code?
Silver in raw or semi-manufactured form is 7106. Silver jewellery is 7113 and silver articles 7114.
What is the GST on silver ornaments?
3% on the full value including making charges. Making charges on the customer's own silver are 5%.
What is the silver coin hsn code?
Silver coins are billed under 7106 or 7118, at 3%.
Is GST charged on old silver exchange?
The jeweller charges 3% on the new silver. The old silver from an individual is not taxed.