GST rates and HSN classification
3% GST Rate List in India: Gold, Silver, Jewellery and Precious Metals
India applies a special 3% Goods and Services Tax (GST) rate to specified goods, principally precious metals, jewellery and certain articles classified in Chapter 71 of the Customs Tariff. For a taxable intra-State supply, the usual split is 1.5% CGST and 1.5% SGST or UTGST; for an inter-State supply, the corresponding rate is 3% IGST. The applicable rate depends on the exact product description, HSN code, exemptions and notifications in force on the date of supply.
Legal provisions governing the 3% GST rate
Section 9(1) of the Central Goods and Services Tax Act, 2017 is the charging provision for CGST on intra-State supplies of goods or services, at rates notified on the recommendations of the GST Council. Corresponding SGST or UTGST applies under the relevant State or Union Territory law. Section 5(1) of the Integrated Goods and Services Tax Act, 2017 provides for IGST on inter-State supplies, subject to its statutory conditions.
Section 15 of the CGST Act sets out the rules for determining the value of a taxable supply, generally based on transaction value where its conditions are met. Section 16 deals with eligibility and conditions for input tax credit. Section 31 concerns tax invoices. Classification and the precise rate must be checked against the relevant rate notifications and amendments.
The original 3% schedule appeared in Notification No. 1/2017-Central Tax (Rate), dated 28 June 2017, Schedule V, read with the corresponding State and integrated-tax notifications. Subsequent amendments and rate rationalisation, including changes following the 56th GST Council meeting in September 2025, must be considered for current supplies. See the CBIC GST goods and services rate schedules and GST Council official website.
List of goods in the 3% GST category
The following table retains the original Chapter 71 HSN entries. The rates shown represent the special 3% rate treatment associated with these entries; descriptions, exceptions and classification should be checked against the applicable current notifications.
| HSN code | Description of goods | CGST | SGST / UTGST | IGST |
|---|---|---|---|---|
| 7101 | Pearls, natural or cultured, whether or not worked or graded but not strung, mounted or set; pearls, natural or cultured, temporarily strung for convenience of transport | 1.5% | 1.5% | 3% |
| 7105 | Dust and powder of natural or synthetic precious or semi-precious stones | 1.5% | 1.5% | 3% |
| 7106 | Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured forms, or in powder form | 1.5% | 1.5% | 3% |
| 7107 | Base metals clad with silver, not further worked than semi-manufactured | 1.5% | 1.5% | 3% |
| 7108 | Gold (including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder form | 1.5% | 1.5% | 3% |
| 7109 | Base metals or silver, clad with gold, not further worked than semi-manufactured | 1.5% | 1.5% | 3% |
| 7110 | Platinum, unwrought or in semi-manufactured forms, or in powder form | 1.5% | 1.5% | 3% |
| 7111 | Base metals, silver or gold, clad with platinum, not further worked than semi-manufactured | 1.5% | 1.5% | 3% |
| 7112 | Waste and scrap of precious metal or of metal clad with precious metal; other waste and scrap containing precious metal or precious metal compounds, of a kind used principally for the recovery of precious metal. | 1.5% | 1.5% | 3% |
| 7113 | Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal | 1.5% | 1.5% | 3% |
| 7114 | Articles of goldsmiths' or silversmiths' wares and parts thereof, of precious metal or of metal clad with precious metal | 1.5% | 1.5% | 3% |
| 7115 | Other articles of precious metal or of metal clad with precious metal | 1.5% | 1.5% | 3% |
| 7116 | Articles of natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed) | 1.5% | 1.5% | 3% |
| 7117 | Imitation jewellery | 1.5% | 1.5% | 3% |
| 7118 | Coin | 1.5% | 1.5% | 3% |
| 7113 11 10 | Silver filigree work | 1.5% | 1.5% | 3% |
| 7117 | Handmade imitation jewellery (including natural seeds, beads jewelry, cardamom garland) | 1.5% | 1.5% | 3% |
Diamonds and precious stones: separate rate categories
Not every item in Chapter 71 is taxed at 3%. The original webpage also identified special rates for certain diamonds and precious stones. The precise description of each notified entry matters more than the four-digit HSN heading alone.
| HSN | Goods described in the original list | Historical CGST | Historical SGST | Historical IGST |
|---|---|---|---|---|
| 7102 | Non-industrial diamonds, unworked or simply sawn, cleaved or bruted | 0.125% | 0.125% | 0.25% |
| 7103 | Precious stones other than diamonds and semi-precious stones, unworked or simply sawn or roughly shaped | 0.125% | 0.125% | 0.25% |
| 7104 | Synthetic or reconstructed precious or semi-precious stones, unworked or simply sawn or roughly shaped | 0.125% | 0.125% | 0.25% |
The original source contained a typographical error showing 0.0125% for the State component of the 0.25% category; the arithmetic split is 0.125% plus 0.125%. The table above is historical. Rates and product descriptions for rough, cut, polished, synthetic and other diamonds or stones may differ under later notifications.
How GST applies to jewellery
For a taxable sale of finished gold or silver jewellery falling within the notified 3% entry, GST is generally computed on the taxable transaction value. The CBIC's sectoral guidance explains that where jewellery is sold to the customer, separately showing making charges on the invoice does not by itself split that single supply into a 3% gold component and a separate making-charge supply. The treatment of a separately contracted job-work service is different and must be examined on its own facts.
For example, where the taxable transaction value of qualifying jewellery is Rs. 50,000, GST at 3% would be Rs. 1,500, making the invoice total Rs. 51,500, before any other applicable adjustments. This is an illustration, not a determination of the rate for every jewellery product or transaction.
How to verify the correct GST rate
- Identify the product's material, manufacturing stage, use and complete HSN classification.
- Read the precise entry and exclusions in the latest applicable CGST, SGST or IGST rate notifications.
- Confirm whether the supply is intra-State or inter-State and whether an exemption or special valuation rule applies.
- Check the date of supply and any transitional provisions before using a rate from an older article or schedule.
Official legal and GST references
- CBIC: GST goods and services rates - rate schedules and classification information.
- CBIC: GST rates frequently asked questions - product-specific clarifications.
- CBIC: sectoral GST FAQs - including jewellery valuation and job-work guidance.
- GST Council: FAQs on the 56th Council decisions - context for later rate reforms.
- India Code - authoritative statutory texts for the CGST and IGST Acts.
This page provides general information and should not substitute for checking the legally effective notification applicable to a particular supply.