Tax That Glitters: Here’s the GST on Silver in India

If you’re planning to buy silver in India—whether as jewellery, coins, or bullion—understanding the Goods and Services Tax (GST) is crucial for budgeting your purchase. The GST regime has streamlined silver taxation, but the total cost can still surprise new buyers.

 

Key Highlights:

 

•⁠  ⁠GST Rate on Silver: A flat 3% GST is levied on the value of silver, regardless of whether it’s in the form of bars, coins, or ornaments. This applies at the point of purchase and covers unwrought, semi-manufactured, and finished silver items.

 

•⁠  ⁠Jewellery-Making Charges: If you’re buying silver jewellery, an additional GST is charged on the making charges—typically 5% to 18%, depending on the artisan or jeweller.

 

•⁠  ⁠No GST on Resale: When individuals resell silver, GST does not apply to the transaction.

 

•⁠  ⁠Export Exemption: GST is waived on exports of silver to promote overseas trade.

 

•⁠  ⁠Calculation Example: For silver worth ₹10,000, you’ll pay ₹300 as GST, plus GST on any making charges if applicable.

 

Outlook:

The unified 3% GST has made silver pricing more transparent and predictable for buyers. However, jewellery buyers should factor in the extra GST on making charges to avoid surprises at checkout. As silver remains a popular investment and gifting choice, understanding these tax rules ensures smarter, hassle-free purchases.

 

Source: BankBazaar, News18, ClearTax