HSN Chapter 71: Gold, Silver, Diamonds & Precious Stones GST Rates 2026
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Special Concessional Rates Continue in 2026:
Chapter 71 (precious metals, stones & jewellery) maintains its SPECIAL LOW GST RATES even after GST 2.0 reforms (September 22, 2025). Unlike other sectors that moved to the two-slab system (5% & 18%), gold and silver jewellery continues to enjoy concessional 3% GST to support the jewellery industry and keep precious metals affordable for Indian consumers and investors.
GST Rates for Chapter 71 (Current as of 2026) - SPECIAL RATES:
- 💛 Gold Jewellery & Gold: 3% GST UNCHANGED (Bars, Coins, Ornaments)
- 🤍 Silver Jewellery & Silver: 3% GST UNCHANGED (Bars, Coins, Utensils)
- 🔨 Making Charges: 5% GST UNCHANGED (Jewellery Crafting)
- 💎 Diamonds (Industrial): 0.25% GST UNCHANGED (Unworked/Rough)
- 💎 Diamonds (Worked): 3% GST UNCHANGED (Cut & Polished)
- 💍 Diamond Jewellery: 3% GST UNCHANGED
- 🔮 Precious & Semi-Precious Stones: 3% GST UNCHANGED
- 💫 Imitation Jewellery: 3% GST UNCHANGED
- 💚 Bangles (Lac/Shellac): 0% GST (NIL) UNCHANGED
✅ Why Chapter 71 Escaped GST 2.0 Changes?
- 💛 Strategic Sector: Gold/Silver industry crucial for Indian economy
- 🏪 Retail Impact: 3% keeps jewellery affordable for middle-class buyers
- 💼 Employment: Protects millions of jobs in jewellery manufacturing
- 📊 Investment: Low GST encourages gold investment (safe haven asset)
- 🇮🇳 Cultural Importance: Gold/Silver integral to Indian weddings & traditions
- ⚖️ Policy Decision: Government chose NOT to disturb special jewellery rates
HSN Chapter 71 encompasses natural or cultured pearls, precious or semi-precious stones (diamonds, rubies, sapphires, emeralds), precious metals (gold, silver, platinum) whether unwrought or in semi-manufactured forms or in powder form, articles of jewellery and parts thereof made of precious metal or metal clad with precious metal, articles of goldsmiths or silversmiths wares, other articles of precious metal or metal clad with precious metal, articles of natural or cultured pearls or precious/semi-precious stones, imitation jewellery, and coins. This chapter covers the entire precious metals and jewellery value chain from raw materials to finished ornaments.
Under GST framework continuing through 2026, Chapter 71 retains its SPECIAL CONCESSIONAL RATE STRUCTURE that predates GST 2.0 reforms: gold and silver jewellery along with precious stones attract only 3% GST (compared to standard 18% rate for most goods), making India one of the lowest-taxed precious metal markets globally; industrial diamonds get ultra-low 0.25% GST supporting the diamond processing industry; making charges (jewellery crafting labor) attract 5% GST; and lac/shellac bangles enjoy complete NIL rate supporting traditional artisans. These rates remained UNCHANGED during GST 2.0 transition as Government prioritized stability in the sensitive jewellery sector.
⚙️ GST 2026 Rate Structure for Chapter 71
🎯 SPECIAL GST RATES (Exempt from GST 2.0 Two-Slab System)
Chapter 71 maintains UNIQUE CONCESSIONAL RATES:
ULTRA-LOW RATES (0% - 0.25%):
- 🟢 NIL (0% GST): Lac/Shellac bangles (traditional artisan support)
- 🟢 0.25% GST: Industrial diamonds (rough/unworked) - ultra-low rate
CONCESSIONAL RATE (3% GST):
- 💛 3% GST: Gold jewellery, gold bars, gold coins
- 🤍 3% GST: Silver jewellery, silver bars, silver coins, silver utensils
- 💎 3% GST: Diamonds (cut & polished), diamond jewellery
- 🔮 3% GST: Precious stones (rubies, sapphires, emeralds)
- 💎 3% GST: Semi-precious stones (amethyst, topaz, garnet)
- 💫 3% GST: Imitation jewellery (costume jewelry)
- 🌟 3% GST: Platinum jewellery & articles
MAKING CHARGES (5% GST):
- 🔨 5% GST: Jewellery making/crafting charges (labor component)
⚠️ NOT Subject to GST 2.0 Changes:
- Gold/Silver sector exempted from two-slab restructuring
- Special rates preserved for economic/cultural reasons
- No increase from 3% to 5% or 18% under GST 2.0
📊 Why 3% GST on Gold/Silver?
- 🏪 Consumer Affordability: Low rate keeps jewellery accessible for middle class
- 💼 Industry Protection: Supports organized jewellery sector vs unorganized/black market
- 🌍 Global Competition: Maintains India's competitiveness in gems & jewellery exports
- 💰 Investment Vehicle: Encourages gold investment (traditional safe haven)
- 🇮🇳 Cultural Significance: Gold integral to Indian weddings, festivals, traditions
- 📈 Revenue Balance: 3% on high-value items generates significant tax despite low rate
💎 Pearls, Precious & Semi-Precious Stones (HSN 7101-7105)
HSN 7101 - Pearls (Natural or Cultured)
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7101 10 00 | Natural pearls | 3% | Natural sea pearls, river pearls |
| 7101 21 00 | Cultured pearls (unworked) | 3% | Unprocessed cultured pearls |
| 7101 22 00 | Cultured pearls (worked) | 3% | Processed cultured pearls for jewellery |
HSN 7102 - Diamonds (Whether or Not Worked)
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7102 10 00 | Unsorted diamonds | 0.25% | Rough diamonds (mixed quality) |
| 7102 21 00 | Industrial diamonds (unworked or simply sawn, cleaved or bruted) | 0.25% | Industrial grade rough diamonds |
| 7102 29 00 | Other industrial diamonds (worked but not mounted or set) | 0.25% | Processed industrial diamonds |
| 7102 31 00 | Non-industrial diamonds (unworked or simply sawn, cleaved or bruted) | 0.25% | Rough gem-quality diamonds |
| 7102 39 00 | Other non-industrial diamonds (worked but not mounted or set) | 3% | Cut & polished diamonds for jewellery |
💎 Diamond GST Rates - Two-Tier Structure:
| Diamond Type | Processing Stage | GST Rate | Purpose |
|---|---|---|---|
| Rough Diamonds | Unworked/Raw | 0.25% | Supports diamond processing industry |
| Industrial Diamonds | Any stage | 0.25% | Cutting tools, industrial use |
| Cut & Polished | Worked/Processed | 3% | Ready for jewellery setting |
| Diamond Jewellery | Set in ornaments | 3% | Final retail product |
Policy: Ultra-low 0.25% on rough diamonds encourages domestic processing; 3% on finished diamonds keeps jewellery affordable!
HSN 7103 - Precious Stones (Other than Diamonds) and Semi-Precious Stones
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7103 10 00 | Unworked or simply sawn or roughly shaped | 3% | Rough rubies, sapphires, emeralds |
| 7103 91 00 | Rubies, sapphires and emeralds (worked) | 3% | Cut & polished precious stones |
| 7103 99 00 | Other precious/semi-precious stones (worked) | 3% | Amethyst, topaz, garnet, opal, jade |
HSN 7104 - Synthetic or Reconstructed Precious or Semi-Precious Stones
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7104 10 00 | Piezo-electric quartz | 3% | Synthetic quartz for electronics |
| 7104 20 00 | Other, unworked or simply sawn or roughly shaped | 3% | Rough synthetic stones |
| 7104 90 00 | Other | 3% | Lab-grown diamonds, synthetic rubies |
HSN 7105 - Dust and Powder of Natural/Synthetic Precious or Semi-Precious Stones
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7105 10 00 | Of diamonds | 3% | Diamond dust, diamond powder |
| 7105 90 00 | Other | 3% | Gemstone powder, abrasive powders |
💛 PRECIOUS METALS - Gold, Silver, Platinum (HSN 7106-7112)
HSN 7106 - Silver (Including Silver Plated with Gold or Platinum)
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7106 10 00 | Powder | 3% | Silver powder (industrial use) |
| 7106 91 00 | Unwrought silver | 3% | Silver bars, silver ingots |
| 7106 92 00 | Semi-manufactured silver | 3% | Silver sheets, silver wire |
HSN 7108 - Gold (Including Gold Plated with Platinum)
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7108 11 00 | Powder (non-monetary) | 3% | Gold powder (industrial use) |
| 7108 12 00 | Other unwrought forms (non-monetary) | 3% | Gold bars, gold biscuits (999 purity) |
| 7108 13 00 | Other semi-manufactured forms (non-monetary) | 3% | Gold sheets, gold wire, gold foil |
| 7108 20 00 | Monetary gold | 3% | Gold coins issued by government/RBI |
HSN 7110 - Platinum
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7110 11 00 | Platinum powder | 3% | Platinum powder (industrial/catalytic use) |
| 7110 19 00 | Other platinum (unwrought/semi-manufactured) | 3% | Platinum bars, platinum wire, platinum sheets |
| 7110 21 00 | Palladium powder | 3% | Palladium powder |
| 7110 29 00 | Other palladium (unwrought/semi-manufactured) | 3% | Palladium bars |
| 7110 31 00 | Rhodium powder | 3% | Rhodium powder |
| 7110 39 00 | Other rhodium (unwrought/semi-manufactured) | 3% | Rhodium bars |
| 7110 41 00 | Iridium, osmium, ruthenium powder | 3% | Rare metal powders |
| 7110 49 00 | Other iridium, osmium, ruthenium | 3% | Rare metals (unwrought) |
HSN 7112 - Waste and Scrap of Precious Metal
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7112 30 00 | Ash containing precious metal or precious metal compounds | 3% | Gold ash, silver ash (refining material) |
| 7112 91 00 | Of gold, including metal clad with gold | 3% | Gold scrap, old gold jewellery |
| 7112 92 00 | Of platinum, including metal clad with platinum | 3% | Platinum scrap |
| 7112 99 00 | Other | 3% | Silver scrap, other precious metal scrap |
💍 JEWELLERY & ARTICLES OF PRECIOUS METALS (HSN 7113-7116)
💍 Gold & Silver Jewellery at 3% GST
ALL jewellery made from precious metals attracts uniform 3% GST. Making charges (labor/craftsmanship) attract separate 5% GST on the service component.
HSN 7113 - Articles of Jewellery and Parts Thereof
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7113 11 10 | Jewellery of silver (excluding bangles) | 3% | Silver rings, silver necklaces, silver earrings |
| 7113 11 20 | Bangles | NIL | Silver bangles (plain), lac/shellac bangles |
| 7113 11 90 | Other silver jewellery | 3% | Silver anklets, silver toe rings |
| 7113 19 10 | Jewellery of gold (excluding bangles) | 3% | Gold rings, gold necklaces, gold chains, gold earrings |
| 7113 19 20 | Gold bangles | 3% | Gold bangles, gold kada |
| 7113 19 30 | Jewellery of platinum | 3% | Platinum rings, platinum necklaces |
| 7113 19 90 | Other precious metal jewellery | 3% | Mixed metal jewellery, designer jewellery |
| 7113 20 00 | Of base metal clad with precious metal | 3% | Gold-plated jewellery, silver-plated jewellery |
⚠️ Making Charges: Separate 5% GST on Labor!
Jewellery GST Calculation has TWO components:
- 💛 Gold/Material Value: 3% GST (on metal + stones)
- 🔨 Making Charges: 5% GST (on craftsmanship/labor)
Example Calculation:
| Component | Amount | GST Rate | GST Amount |
|---|---|---|---|
| Gold (10 grams @ ₹6,000/gm) | ₹60,000 | 3% | ₹1,800 |
| Making Charges | ₹10,000 | 5% | ₹500 |
| Total GST | ₹2,300 | ||
| Final Price | ₹72,300 | ||
⚠️ Important: Both components taxed separately at different rates!
HSN 7114 - Articles of Goldsmiths' or Silversmiths' Wares
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7114 11 00 | Of silver (tableware, toilet-ware, etc.) | 3% | Silver plates, silver spoons, silver cups, silver utensils |
| 7114 19 00 | Of other precious metal | 3% | Gold utensils, platinum articles |
| 7114 20 00 | Of base metal clad with precious metal | 3% | Silver-plated utensils, gold-plated articles |
HSN 7115 - Other Articles of Precious Metal
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7115 10 00 | Catalysts in the form of wire cloth or grill | 3% | Platinum catalysts, rhodium catalysts |
| 7115 90 10 | Idols | 3% | Gold/silver religious idols, deity statues |
| 7115 90 90 | Other | 3% | Gold/silver decorative articles, trophies |
HSN 7116 - Articles of Natural/Cultured Pearls, Precious/Semi-Precious Stones
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7116 10 00 | Of natural or cultured pearls | 3% | Pearl necklaces, pearl jewellery |
| 7116 20 00 | Of precious or semi-precious stones | 3% | Gemstone jewellery, ruby/sapphire ornaments |
💫 IMITATION JEWELLERY (HSN 7117)
💫 Imitation Jewellery at 3% GST
ALL imitation/fashion/costume jewellery attracts 3% GST, same as precious metal jewellery. This includes artificial jewellery, kundan jewellery (non-gold), fashion accessories, etc.
HSN 7117 - Imitation Jewellery
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7117 11 00 | Cuff-links and studs (of base metal) | 3% | Metal cuff-links, collar studs |
| 7117 19 00 | Other imitation jewellery (of base metal) | 3% | Artificial necklaces, fashion earrings, costume jewellery |
| 7117 90 00 | Other imitation jewellery | 3% | Plastic jewellery, glass jewellery, beaded accessories |
🪙 COINS (HSN 7118)
HSN 7118 - Coins
| HSN Code | Description | GST Rate (2026) | Products |
|---|---|---|---|
| 7118 10 00 | Coin (other than gold coin), not being legal tender | 3% | Silver coins (non-legal tender), commemorative coins |
| 7118 90 00 | Other (including gold coins) | 3% | Gold coins, investment coins, collectible coins |
📋 GST 2026 Compliance Points for Chapter 71
💍 Jewellery Retailers
- Gold/Silver jewellery: 3% GST
- Making charges: Separate 5% GST
- Diamond jewellery: 3% GST
- Must maintain detailed invoices
- ITC available on inputs
💎 Diamond Traders
- Rough diamonds: 0.25% GST
- Cut & polished: 3% GST
- Diamond jewellery: 3% GST
- Special export incentives apply
- Minimal tax burden supports industry
🏪 Bullion Dealers
- Gold bars: 3% GST
- Silver bars: 3% GST
- Gold coins: 3% GST
- Reverse Charge Mechanism (RCM) on unregistered purchases
- Mandatory e-invoicing for turnover > ₹5 Cr
💫 Imitation Jewellery Dealers
- ALL imitation jewellery: 3% GST
- Same rate as precious metal jewellery
- Fashion accessories: 3% GST
- No differentiation by material
- Simple compliance
🎯 GST 2026 Precious Metals Sector Analysis
Why Chapter 71 Rates Remained UNCHANGED Under GST 2.0
- ✅ Strategic Sector: Gold/Silver crucial to Indian economy & culture
- ✅ Consumer Sensitivity: Price increase would severely impact demand
- ✅ Industry Lobbying: Strong jewellery lobby protected concessional rates
- ✅ Employment Impact: 5+ million jobs in organized jewellery sector
- ✅ Export Competitiveness: India major gems & jewellery exporter
- ✅ Revenue Adequate: 3% on high-value items generates significant tax
- ✅ Black Market Prevention: Low rates discourage unorganized trading
Special Features of Chapter 71 GST Structure
- 💎 Ultra-Low Rate: 0.25% on rough diamonds (unique in GST)
- 💛 Uniform 3%: Gold, silver, platinum, diamonds - all same rate
- 🔨 Making Charges: Separate 5% GST on labor (services)
- 💚 NIL Rate: Lac/shellac bangles (artisan support)
- 💫 Imitation = Precious: Artificial jewellery also 3% (not 18%!)
- ⚖️ Not Subject to GST 2.0: Exempted from two-slab restructuring
Common Jewellery GST Mistakes to Avoid
- ❌ Wrong: Charging 3% on total bill (gold + making charges combined)
- ✅ Right: 3% on gold/materials + 5% on making charges separately
- ❌ Wrong: Treating old gold exchange as normal sale
- ✅ Right: GST only on net new gold sold (after old gold adjustment)
- ❌ Wrong: Not mentioning making charges separately in invoice
- ✅ Right: Clear bifurcation of material cost vs making charges
- ⚠️ Pro Tip: Jewellers MUST specify HSN codes for audit compliance!
❓ Frequently Asked Questions (FAQs) - HSN Chapter 71
Answer: Gold jewellery attracts 3% GST (UNCHANGED under GST 2.0).
Complete Gold Jewellery GST:
- 💛 Gold material/metal: 3% GST
- 🔨 Making charges (labor): 5% GST (separate)
- 💎 Stones in jewellery: Included in 3% GST
Example: Gold Ring
- Gold (5 grams @ ₹6,000/gm) = ₹30,000 → GST @ 3% = ₹900
- Making charges = ₹5,000 → GST @ 5% = ₹250
- Total GST = ₹1,150
- Final Price = ₹36,150
Answer: Silver jewellery and utensils attract 3% GST.
- 🤍 Silver jewellery (rings, necklaces) → 3% GST
- 🤍 Silver utensils (plates, spoons, glasses) → 3% GST
- 🤍 Silver coins → 3% GST
- 🤍 Silver bars/bullion → 3% GST
- 💚 Exception: Plain lac/shellac bangles → NIL (0% GST)
Making charges on silver jewellery: Separate 5% GST!
Answer: Diamond GST rate depends on processing stage:
| Diamond Type | GST Rate | HSN Code |
|---|---|---|
| Rough/Unworked Diamonds | 0.25% | 7102 31 00 |
| Industrial Diamonds | 0.25% | 7102 21 00 / 7102 29 00 |
| Cut & Polished Diamonds | 3% | 7102 39 00 |
| Diamond Jewellery | 3% | 7113 (various) |
Policy: Ultra-low 0.25% on rough diamonds encourages domestic cutting/polishing industry!
Answer: NO - Chapter 71 rates COMPLETELY UNCHANGED under GST 2.0!
GST 2.0 Impact on Precious Metals:
- ✅ Gold jewellery: 3% GST (NO CHANGE)
- ✅ Silver jewellery: 3% GST (NO CHANGE)
- ✅ Diamond jewellery: 3% GST (NO CHANGE)
- ✅ Making charges: 5% GST (NO CHANGE)
- ✅ Imitation jewellery: 3% GST (NO CHANGE)
Reason: Government exempted precious metals sector from GST 2.0 restructuring due to cultural/economic sensitivity!
Answer: Gold coins and bars attract 3% GST.
- 💛 Gold bars (999 purity) → 3% GST
- 💛 Gold biscuits (995/999.9 purity) → 3% GST
- 💛 Gold coins (24K) → 3% GST
- 💛 Gold coins (22K) → 3% GST
Example Calculation:
- 10 gram gold bar @ ₹60,000 = ₹60,000
- GST @ 3% = ₹1,800
- Total = ₹61,800
⚠️ No making charges on plain bars/coins - only on crafted jewellery!
Answer: Imitation jewellery attracts 3% GST (same as precious metal jewellery!).
- 💫 Artificial necklaces → 3% GST
- 💫 Fashion earrings → 3% GST
- 💫 Costume jewellery → 3% GST
- 💫 Plastic/glass jewellery → 3% GST
- 💫 Beaded accessories → 3% GST
⚠️ Important: Imitation jewellery NOT taxed at 18% - special 3% rate applies!
This is unique to Chapter 71 - low rate supports fashion accessories industry.
Answer: Calculate GST separately for material (3%) and making charges (5%).
Step-by-Step Calculation:
Example: Custom Gold Necklace
| Component | Amount | GST Rate | GST | Total |
|---|---|---|---|---|
| Gold (20g @ ₹6,000) | ₹1,20,000 | 3% | ₹3,600 | ₹1,23,600 |
| Making Charges | ₹15,000 | 5% | ₹750 | ₹15,750 |
| TOTAL | ₹4,350 | ₹1,39,350 | ||
⚠️ Key Point: NEVER calculate 3% on combined amount - always separate!
Answer: GST charged only on NET NEW GOLD after old gold adjustment.
Old Gold Exchange Scenario:
- New jewellery purchased: ₹1,00,000 (gold value)
- Old gold given: ₹70,000 (exchange value)
- Net new gold: ₹30,000
- GST calculated on: ₹30,000 @ 3% = ₹900
- Plus making charges GST: On full making @ 5%
⚠️ Important: Old gold value DEDUCTED before GST calculation on material!
Making charges GST applicable on entire new jewellery (not reduced by old gold).
Answer: Only plain lac/shellac bangles get NIL GST (HSN 7113 11 20).
NIL GST Bangles:
- 💚 Lac bangles (traditional, plain) → 0% GST
- 💚 Shellac bangles (simple, unadorned) → 0% GST
3% GST Bangles:
- 💛 Gold bangles → 3% GST
- 🤍 Silver bangles → 3% GST
- 💫 Imitation bangles → 3% GST
- 💎 Designer lac bangles (with stones) → 3% GST
Policy: NIL rate supports traditional artisans making simple lac/shellac bangles!
Answer: YES, registered jewellers can claim full ITC on inputs.
ITC Available On:
- ✅ Gold bullion purchased (3% GST paid → ITC claimable)
- ✅ Diamonds purchased (0.25%/3% GST → ITC claimable)
- ✅ Silver purchased (3% GST → ITC claimable)
- ✅ Packaging materials, boxes (18% GST → ITC claimable)
- ✅ Manufacturing tools (18% GST → ITC claimable)
ITC NOT Available:
- ❌ Purchases from unregistered dealers (RCM applies)
- ❌ Old gold purchased from customers (no GST invoice)
Pro Tip: ITC on inputs reduces effective GST burden significantly!
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