GST on Silver in India (2026): Jewellery, Coins, Bars and Making Charges Explained
Updated 3 November 2026 · By the Shining Silver team (Mayank Chains & Jewels, Mathura) · 5-minute read
Quick answers
- What is the GST rate on silver? 3% on silver jewellery, coins, bars and other silver articles.
- Is GST charged on making charges? For jewellery sold to you, the GST Council’s FAQ says 3% applies to the total transaction value, whether or not the making charge is shown separately.
- Does the rate change with purity? No. 925 sterling silver and 999 fine silver items are charged at the same 3% rate.
- Is there GST on silver ETFs? No. ETF units are taxed through capital gains when you sell, not through GST at purchase.
How GST is calculated on a silver jewellery invoice
GST is added on top of the silver value and the making charges. The formula is: (weight × silver value for the grade + making charges) × 3%. Start with the live silver rate today and the grade stamped on the piece.
This illustrative example uses 50 g of 925 jewellery, the 2 November 2026 rate of about ₹200 per gram for 999 silver, and 10% making charges.
| Line | Amount |
|---|---|
| Silver value (50 g × ₹185, which is 92.5% of ₹200) | ₹9,250 |
| Making charges at 10% | ₹925 |
| Taxable value | ₹10,175 |
| GST at 3% | about ₹305 |
| Total payable | about ₹10,480 |
Within one state, the 3% is usually split equally into CGST and SGST (1.5% each). On a sale between states, it appears as 3% IGST. The total is the same.
GST on silver coins and bars
Coins and bars carry the same 3% GST on the metal value plus any brand premium. For a 50 g coin at ₹200 per gram with a 2% premium, the metal is ₹10,000, the premium ₹200, GST about ₹306, and the total about ₹10,506. Coins have no separate making charge, which is one reason many buyers choose them for holding metal.
What about the 5% GST some websites mention?
Some finance websites quote 5% GST on making charges. That figure usually relates to job-work services billed between businesses, not to the invoice a retail buyer receives for finished jewellery. Check the rate printed on your own invoice, and confirm any doubt with your chartered accountant.
Is GST refunded when you sell silver back?
Generally, no. When you sell silver back, a jeweller normally pays for the metal content at the prevailing rate, less any deductions. The GST and making charges you paid at purchase are not usually returned. Our guide on how to check if silver is real also covers what to ask before you buy or sell.
What a GST invoice for silver should show
- The seller’s name, address and GSTIN.
- A description of each item with net weight and purity grade (for example 925 or 999). See what 925 sterling silver means.
- The rate per gram used and the metal value.
- Making charges shown as a separate line.
- The GST amount split into CGST and SGST, or shown as IGST.
- The invoice number, date and total.
GST is not the same as capital gains tax
GST is paid when you buy. Capital gains tax applies to your profit when you sell. For physical silver, gains on holdings of more than 24 months are generally treated as long-term and taxed at 12.5% without indexation, while shorter holdings are taxed at your income-tax slab rate. Tax rules change, so confirm with a CA before you sell.
Frequently asked questions
What is the GST rate on silver in 2026?
Silver jewellery, coins, bars and articles attract 3% GST in India. The rate is the same for 925 sterling silver and 999 fine silver. Always check the GST line on your invoice to confirm what was charged.
Is GST charged on making charges for silver jewellery?
Per the GST Council’s FAQ, GST on jewellery is charged at 3% on the total transaction value, whether or not the making charge is shown separately. Some finance websites mention 5% on making charges, which usually relates to job-work between businesses.
Is GST charged on silver coins and bars?
Yes. Silver coins and bars attract 3% GST on the metal value plus any brand premium. They normally have no separate making charge, so the total is usually close to the metal value plus premium plus GST.
Is there GST on silver ETFs?
No. Silver ETF units are bought through a demat account and do not attract GST at purchase. Gains are taxed as capital gains when you sell, and brokerage and fund expenses apply.
Do I get my GST back when I sell silver?
Generally not. A jeweller normally pays for the metal content at the prevailing rate, less deductions, and the GST and making charges you paid at purchase are not usually returned. Ask for buyback terms in writing before you buy.
What should a GST invoice for silver show?
It should show the seller’s name and GSTIN, item description, net weight, purity grade, rate per gram, making charges, GST split into CGST and SGST or IGST, and the invoice number, date and total.
About Shining Silver
Shining Silver is run by Mayank Chains & Jewels from Tilak Dwar, Holigate, Mathura. Check each product page for weight, grade and pickup or delivery details before you order.
Sources
- GST Council FAQ on gems and jewellery (gstcouncil.gov.in).
- Shriram Finance, Busy and Aditya Birla Capital GST on silver guides (2026).
- Zerodha Fund House, ClearTax and Kotak Neo tax guides on silver (2026).
- Silver rates: Goodreturns, Groww and Kotak Neo (2 November 2026).
This guide is for general information and is not financial, tax or medical advice. Prices and rules can change.
