HSN codes and GST rates for gold, silver and diamond jewellery

The jeweller’s HSN table

HSN is the code that tells the GST system what you sold. Most jewellers only need a handful, all in Chapter 71 of the tariff, plus one service code for job work. The table below lists the ones a jewellery shop or karigar is most likely to use, with the rate from the government notification in force since 22 September 2025.

The 4-digit codes below are headings. Your CA will give you the full 6- or 8-digit code for each item if your turnover needs it (see the section on digits below).

HSN 7113: gold, silver, platinum and diamond jewellery

The government’s description of heading 7113 is “articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal”. In plain words: almost everything on your counter. A 22K chain, an 18K diamond ring, a silver payal and a platinum band all fall under 7113.

The rate is 3%. Within your state, the bill shows it as 1.5% CGST and 1.5% SGST. When the piece goes to a customer or business in another state, it shows as 3% IGST. The rate did not change when GST rates were reset on 22 September 2025; jewellery sits in Schedule IV of the new rate notification, the 3% list.

A diamond ring is still 7113, not 7102. The stones are part of the piece, so the whole ring, metal, diamonds and making, is billed at 3%. The separate diamond rates in the table are for loose stones sold on their own.

Two neighbours are worth knowing. 7114 covers goldsmiths’ and silversmiths’ wares, such as silver plates, glasses and other articles that are not worn. 7117 is imitation jewellery. Both are also 3%, but they are different codes, so they should not be billed as 7113.

Bullion, coins and old gold: 7108, 7106, 7118 and 7112

If you sell gold bars or biscuits, use 7108. Silver bars use 7106. Gold and silver coins use 7118. All three are 3%, the same as jewellery.

7112 is waste and scrap of precious metal. It can come up when you send old gold or filings for refining, or sell scrap to a refiner or another trader. It is also 3%.

When a customer brings their own old gold to exchange, the questions are different: who is selling to whom, and whether GST is on the full value of the new piece. We cover that in the GST billing guide. You can work out the value of the old piece with the old gold exchange calculator.

Loose diamonds and stones: 7102 and 7103

Some shops also sell loose diamonds and gemstones. These have their own, lower rates.

Loose diamonds (7102) other than rough or simply sawn ones are taxed at 1.5%. Rough or simply sawn diamonds are 0.25%.

Loose precious and semi-precious stones (7103), such as rubies, emeralds and other gems that are not set in jewellery, are 0.25%.

The moment the stone is set in gold or silver and sold as a piece, the piece is 7113 at 3%. Bill a loose solitaire and a solitaire ring on different lines with different codes.

Making charges: 3% on a piece you sell

This is the question jewellers ask most. When you sell a finished piece, can the making charge be billed at 5% as a service, with only the gold at 3%?

CBIC answered it in its GST FAQ for the gems and jewellery sector. The example is a 10 g gold chain sold for ₹30,000: ₹28,000 of gold and ₹2,000 of making. The answer: GST is payable at 3% of the total transaction value of jewellery, whether the making charge is shown separately or not.

So the making charge stays on the bill under the same code as the piece, usually 7113, and the 3% is worked out on metal plus making plus stones together. You can still show making on its own line for the customer. Try your own figures in the gold GST and making charges calculator.

Job work: SAC 9988 at 5%, or 1.5% for diamonds

Job work is different. A jeweller gives gold to a karigar or workshop, the karigar makes the pieces and returns them, and bills only for the work. The gold never belongs to the karigar. That bill is for a service, not for goods, so it uses the service code SAC 9988.

Job work on gold, silver and other Chapter 71 goods is taxed at 5% (2.5% CGST and 2.5% SGST). CBIC’s FAQ says a registered job worker pays 5% on the job charges only, and the jeweller can take credit for that GST against the GST on the jewellery they sell.

Job work on diamonds, such as cutting and polishing, has its own rate of 1.5% (0.75% CGST and 0.75% SGST), in force since 1 October 2019.

The September 2025 changes moved the rate on some other kinds of job work, but did not change the Chapter 71 entries.

One case is not settled: a private customer gives you their own gold and pays only for the making. Shops treat this differently, so agree it with your CA before you bill it, and bill the same way every time.

How many HSN digits go on your bill

The number of digits depends on your aggregate turnover in the last financial year. This is Notification 78/2020-Central Tax, in force since 1 April 2021.

HSN on the bill and in your returns

• Use one code per kind of item. Keep 7113, 7114, 7117 and the bullion codes on separate lines, even when one customer buys all of them.
• Keep making with the piece. For a retail sale, making sits under the piece’s code, not under a service code.
• Put the HUID on hallmarked gold lines. BIS hallmarking is compulsory for gold jewellery in the notified districts. The stock and HUID guide explains how it works.
• Let the HSN summary build itself. GSTR-1 asks for your sales by HSN code each month. If every bill line has the right code, your CA does not have to sort bills by hand. The GST billing guide covers returns.

How CaratOS handles HSN codes

CaratOS is jewellery billing and shop management software for Indian jewellers. It runs in the browser at app.caratos.co.in, in English and Hindi.

On the bill. Every bill is a GST bill with the HSN code and the HUID on each line, and 3% GST split as CGST and SGST, or IGST when the customer is in another state. Making and stones sit on the same line as the piece, so the 3% is worked out on the full value.

For your CA. On every plan, reports give the GST summary, GSTR-1 and GSTR-3B figures and the HSN summary, with portal-ready files and an Excel export. Your CA gets a free read-only login. Starter exports to Tally; Growth adds Tally live sync.

Karigar work. Karigar jobs are on all plans, so you know which piece is with which karigar and when it is due back. Production stages, karigar pay and wastage are on Growth.

Plans are Starter at ₹1,199 a month and Growth at ₹3,999 a month (₹42,999 a year), GST included. A 15-day Starter trial is available on request, with no card; it starts when CaratOS approves it. See pricing and GST and your CA.

What CaratOS doesn’t do today

CaratOS doesn’t do girvi (gold loans), RFID or manufacturing bills of materials, and there is no Android app. It runs online, so you need an internet connection; CaratOS Desktop is coming soon. If you are a karigar or workshop that bills job work under SAC 9988, ask us in a demo how that fits before you decide. Book a demo.

Sources (checked 1 November 2026)

• CBIC: Notification 9/2025-Integrated Tax (Rate), GST rates on goods from 22 September 2025 (compiled copy on CBIC’s courier portal)
• CBIC: GST FAQ for the gems and jewellery sector (questions 7 and 8), on the GST Council website
• Notification 20/2019-Central Tax (Rate): job work rates under SAC 9988, on the GST Council website
• PIB: Recommendations of the 56th GST Council meeting, 3 September 2025, on the GST Council website
• Notification 78/2020-Central Tax: HSN digits on tax invoices, on the GST Council website
• BIS: Hallmarking overview

Questions shop owners ask