Guide for jewellers · GST
GST on gold jewellery
The GST rates a jewellery shop deals with, where making charges fit, what karigars and repairs are charged, and how old gold and discounts change the bill. With the source for every rate.
What is the GST rate on gold jewellery?
GST on gold jewellery in India is 3% of the full value of the piece: the gold, the making charges and any stones, less a discount shown on the bill. Within a state it is split into 1.5% CGST and 1.5% SGST; for a sale to another state it is 3% IGST. Making charges on ready jewellery are not taxed separately at 5%: the CBIC's sectoral FAQ says GST is 3% of the total value whether or not the making charge is shown separately. The 5% rate applies to job work that a karigar does for a registered jeweller. The jewellery rates were not changed by the GST rate revision of 22 September 2025.
Updated 5 November 2026.
| Supply | HSN / SAC | GST |
|---|---|---|
| Gold, silver or platinum jewellery, plain or set with stones | 7113 | 3% |
| Silver articles and other goldsmiths' and silversmiths' wares | 7114 | 3% |
| Gold and silver bars, biscuits and coins | 7108, 7106, 7118 | 3% |
| Imitation jewellery | 7117 | 3% |
| Cut and polished diamonds, loose | 7102 | 1.5% |
| Rough diamonds | 7102 | 0.25% |
| Job work on jewellery for a registered jeweller (karigar's labour) | 9988 | 5% |
| Job work on diamonds | 9988 | 1.5% |
| Re-making a customer's own old jewellery (labour) | 9988 | 18% per the GJC FAQ; confirm with your CA |
Rates as notified under the CGST Act and the rate notifications on the CBIC portal. Diamond rates: cut and polished diamonds have been at 1.5% since July 2022. Confirm the rate for your exact supply with your accountant.
GST on gold making charges
- Ready jewellery sold to a customer: 3% on metal and making together, not 5% on the making (CBIC FAQ)
- It makes no difference whether the bill shows making as a separate line
- 5% applies only when a karigar does job work on gold owned by a registered jeweller (SAC 998892)
- Re-making a customer's own old jewellery: labour at 18% per the GJC FAQ
- Example: ₹1,00,000 metal + ₹12,000 making = ₹1,12,000; GST 3% = ₹3,360 (₹1,680 CGST + ₹1,680 SGST)
On the customer's bill
- 3% on metal + making + stones, as one value
- Discount shown on the bill is taken off before GST (CGST Act, section 15(3))
- Old gold given in exchange is deducted after GST, from the amount payable
- Show making as a break-up of the piece's value, not as a separate line at another rate
- HSN 7113 on each line; HUID for hallmarked pieces
- PAN or Form 60 for a bill over ₹2 lakh (Income Tax Rule 114B)
Karigars and job work
- A registered karigar charges 5% on the job charges only; the jeweller takes credit for it (CBIC FAQ, question 8)
- Job work on diamonds is 1.5%
- An unregistered karigar charges no GST. The reverse charge on supplies from unregistered persons applies since 1 February 2019 only to categories the government notifies (CGST Act, section 9(4))
- Keep a karigar's issue and receipt record in fine gold, with weight, touch and wastage
Repairs and re-making
- Gold added in a repair is goods, at 3%
- Repair labour is a service. Advisers commonly apply the general repair-services rate of 18%; the trade council's FAQ treats repair labour shown separately at 5%. Ask your CA which applies to you
- Re-making a customer's own old jewellery: the GJC FAQ says it is not job work, because the customer is unregistered, and puts the labour at 18%
Composition scheme
- A jeweller with turnover up to ₹1.5 crore may opt for composition and pay 1% of turnover
- A composition dealer issues a bill of supply, cannot collect GST from customers and cannot take input tax credit
- No inter-state sales under composition
- Compare it with the regular scheme with your CA: with 3% GST and credit on purchases, composition often saves little for jewellers
What JMS does
- 3% GST split as CGST and SGST, or IGST, on every bill
- Discount before tax, old gold and advances after tax
- HSN and HUID on every line
- GSTR-1 files for the GST Offline Tool and the GSTR-3B summary
- Repair bills with GST on the service, at the rate you set
- E-invoice JSON with the IRN and QR printed on the bill, for shops above the e-invoice limit
| Metal value | 10 g × ₹7,250 | ₹72,500 |
|---|---|---|
| Making charges | 10 g × ₹600 | ₹6,000 |
| Less: discount | − ₹500 | |
| Taxable value | ₹78,000 | |
| CGST 1.5% + SGST 1.5% | 3% of ₹78,000 | ₹2,340 |
| Invoice value | ₹80,340 | |
| Less: old gold, 4 g | valued at the counter | − ₹26,000 |
| Balance payable | ₹54,340 |
Rates are for illustration only. GST is charged on the new jewellery's full value; the old gold is a payment towards it.
Sources: CBIC: Sectoral FAQ on Gems and Jewellery · GJC: GST FAQs for the gems and jewellery industry · CBIC tax information portal (GST Acts, Rules and rate notifications)
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FAQ
Frequently asked questions
What is the GST rate on gold jewellery in 2026?
3% of the full value of the jewellery, including making charges and stones. The GST rate changes of 22 September 2025 did not change it.
How are CGST and SGST calculated on gold jewellery?
Work out 3% of the taxable value (metal + making + stones − discount) and split it in half: 1.5% CGST and 1.5% SGST when the shop and the customer are in the same state. For a sale to another state, the full 3% is IGST.
How much GST is charged on 10 grams of gold?
3% of the price before tax. For 10 g of 22K jewellery with ₹1,10,000 of gold and ₹8,000 of making, GST is 3% of ₹1,18,000 = ₹3,540, which is ₹1,770 CGST and ₹1,770 SGST. Gold coins and bars are also 3%.
Is GST on gold making charges 3% or 5%?
3% on a retail sale of ready jewellery. GST is 3% on the total value, making included, whether or not the making is shown separately. The 5% rate is for job work done for a registered jeweller.
What is the GST on silver jewellery?
3%, the same as gold jewellery. Silver articles such as utensils (HSN 7114) are also 3%.
What is the GST on diamond jewellery?
3% on the full value of the piece, including the diamonds, the metal and the making. Loose cut and polished diamonds are 1.5%, and rough diamonds 0.25%.
What is the GST on gold coins and bars?
3%.
Is GST charged on the old gold in an exchange?
GST is charged on the full value of the new jewellery. The old gold's value is then taken off what the customer pays. The old gold itself, bought from a customer who is not registered, carries no GST.
Do jewellers need an e-way bill?
Goods of HSN chapter 71, including jewellery, are exempt from e-way bills under Rule 138(14), except for movement within Kerala. Imitation jewellery (7117) needs one.
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