GST Rate for Gold & Jewellery

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GST Rate for Gold & Jewellery

The GST rate for all goods and services is decided by the GST Council in India. The GST rate for goods including gold fall under the seven slabs of 0%, 0.25%, 3%, 5%, 12%, 18% and 28%. The GST rate for all goods is linked to HSN code or Harmonised System Nomenclature, a system of classification for goods adopted by over 200 countries internationally. In this article, we look at the GST rate for Gold and jewellery along with the applicable HSN code.

GST Rate for Gold

The GST rate for gold, gold jewellery, precious stones and precious metals is 3%. While purchasing gold jewellery or other gold items, the end consumer will have to pay 3% of the taxable value mentioned on the invoice.

Since most gold sold in India is through offline mode, only SGST and CGST would be applicable to the purchase. If a gold purchase is made through an online platform and the supplier is based out of a different state, then IGST would be applicable.

In addition to the GST, gold will attract customs duty of 10% and a gold making charges of 5%. Customs duty of 10% was levied prior to the implementation of GST. However, the GST on gold making charges has been introduced at 5% recently. Hence, the cost of gold and gold jewellery will be marginally higher in the GST era.

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HSN Code for Gold & Jewellery- HSN Chapter 71

HSN chapter 71 contains the HSN code for all types of precious metals, precious stones and gold.

Gold (including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder fall are classified under HSN code 7108 as under:

  • HSN code for gold powder is 7108 11 00.
  • HSN code for other unwrought forms of gold is 7108 12 00.
  • HSN code for other semi-manufactured forms of gold is 7108 13 00
  • HSN code for monetary gold is 7108 20 00
  • HSN code for gold base metals or silver, clad with gold, not further worked than semi-manufactured is 7109 00 00

GST rate of 3% is applicable for all of the above HSN codes. View GST rates for all goods and services.

Jewellery of precious metals or of metal clad with precious metals fall under HSN code 7113 as under:

  • HSN code for jewellery with filigree work is 7113 11 10
  • HSN code for jewellery studded with gems is 7113 11 20
  • HSN code for other articles of jewellery is 7113 11 30
  • HSN code for gold jewellery, unstudded is 7113 19 10
  • HSN code for gold jewellery set with pearls is 7113 19 20
  • HSN code for gold jewellery set with diamonds is 7113 19 30
  • HSN code for gold jewellery set with other precious and semi-precious stones is 7113 19 40

All of the above types of gold jewellery with the above HSN codes attract 3% GST rate.

Gold Coin falls under HSN Code 7118 and attracts a 3% GST rate.

Imitation jewellery fall under HSN code 7117 as under:

  • HSN code for imitation jewellery of base metal, whether or not plated with precious metals is 7117 11 90.
  • HSN code for imitation jewellery in the form of bangles is 7117 19 10.
  • HSN code for jewellery studded with imitation pearls or imitation or synthetic stones is 7117 90 10.

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