GST on Silver
Commodities were taxed as per the old indirect tax regime before the Goods and Services Tax (GST) was introduced. Before the GST regime, silver was taxed with a 1.00% excise duty and 1.00% value-added tax (VAT) that depended on the state policy, cess, and surcharges.
The GST Council, the deliberative body of States, and the Centre introduced a unified tax rate of 3.00% that eliminated multiple taxes that applied to the silver prices.
Each commodity, such as silver, is categories using a unique code called the HSN code (‘Harmonised System of Nomenclature), which is used for the systematic classification of different goods and devised by the World Customs Organisation. Here are more details regarding the GST rate on silver corresponding to the respective HSN code.
GST Rates on Silver
Here is the list of GST rates corresponding to various silver products along with HSN codes:
Silver items | Silver HSN Codes | GST Rates |
Silver (Including Gold or Platinum plated Silver)Unwrought or in Semi-manufactured Forms, or in Powder Form | 7106 | 3.00% |
Silver (Including Gold or Platinum plated silver)Unwrought or in Semi-Manufactured Forms, or in Powder Form – Powder | 71061000 | 3.00% |
Unwrought | 710691 | 3.00% |
Silver (Including Gold or Platinum plated silver)Unwrought or in Semi-Manufactured Forms, or in Powder Form - Other: Unwrought | 71069100 | 3.00% |
Grains | 71069110 | 3.00% |
Others | 71069190 | 3.00% |
Semi-Manufactured | 710692 | 3.00% |
Silver (Including Gold or Platinum plated silver) Unwrought or in Semi-Manufactured Forms, Or in Powder Form Semi-Manufactured: Sheets, Plates, Strips, Tubes, And Pipes | 71069210 | 3.00% |
Bar | 71069220 | 3.00% |
Silver (Including Gold or Platinum plated silver)Unwrought or in Semi-Manufactured Forms, or in Powder Form Semi-Manufactured: Other | 71069290 | 3.00% |
Particulars | Pre-GST Price | Post-GST Price |
Silver Price (1 Kg) | Rs.60,000 | Rs.60,000 |
Custom Duty (10.00%) | Rs.6,000 | Rs.6,000 |
Sub-total | Rs.66,000 | Rs.66,000 |
Excise Duty (1.00%) | Rs.6,600 | - |
Sub-total | Rs.72,600 | Rs.66,000 |
VAT (1.00%) | Rs.7,260 | - |
Sub-total | Rs.79,860 | Rs.66,000 |
GST Rate on Silver (3.00%) | - | Rs.19,800 |
Sub-total | Rs.79,860 | Rs.85,800 |
GST for Silver Making Charges (12.00%) | Rs.7,920 | Rs.7,920 |
Sub-total | ₹87,782 | ₹93,720 |
GST for Silver Making Charges (5.00%) | - | ₹396 |
Total Price | ₹87,782 | ₹94,116 |
Pre-and Post-GST Silver Rates
The following is the list of silver rate before and after GST is added on the corresponding prices of silver products:
Silver items | Silver HSN Codes | GST Rates |
Silver (Including Gold or Platinum plated Silver)Unwrought or in Semi-manufactured Forms, or in Powder Form | 7106 | 3.00% |
Silver (Including Gold or Platinum plated silver)Unwrought or in Semi-Manufactured Forms, or in Powder Form – Powder | 71061000 | 3.00% |
Unwrought | 710691 | 3.00% |
Silver (Including Gold or Platinum plated silver)Unwrought or in Semi-Manufactured Forms, or in Powder Form - Other: Unwrought | 71069100 | 3.00% |
Grains | 71069110 | 3.00% |
Others | 71069190 | 3.00% |
Semi-Manufactured | 710692 | 3.00% |
Silver (Including Gold or Platinum plated silver) Unwrought or in Semi-Manufactured Forms, Or in Powder Form Semi-Manufactured: Sheets, Plates, Strips, Tubes, And Pipes | 71069210 | 3.00% |
Bar | 71069220 | 3.00% |
Silver (Including Gold or Platinum plated silver)Unwrought or in Semi-Manufactured Forms, or in Powder Form Semi-Manufactured: Other | 71069290 | 3.00% |
Particulars | Pre-GST Price | Post-GST Price |
Silver Price (1 Kg) | Rs.60,000 | Rs.60,000 |
Custom Duty (10.00%) | Rs.6,000 | Rs.6,000 |
Sub-total | Rs.66,000 | Rs.66,000 |
Excise Duty (1.00%) | Rs.6,600 | - |
Sub-total | Rs.72,600 | Rs.66,000 |
VAT (1.00%) | Rs.7,260 | - |
Sub-total | Rs.79,860 | Rs.66,000 |
GST Rate on Silver (3.00%) | - | Rs.19,800 |
Sub-total | Rs.79,860 | Rs.85,800 |
GST for Silver Making Charges (12.00%) | Rs.7,920 | Rs.7,920 |
Sub-total | ₹87,782 | ₹93,720 |
GST for Silver Making Charges (5.00%) | - | ₹396 |
Total Price | ₹87,782 | ₹94,116 |
Types of Taxes Imposed on Silver
Here are the three different types of taxes that are imposed on silver rates:
- Short-term Capital Gains Tax (STCG) - Short-term capital gains are added to your taxable income if silver is sold 36 months before the date of purchase and would be taxed as per applicable rates.
- Long-term Capital Gains Tax (LTCG) - If the silver is sold after 36 months from the date of purchase, then Long-term Capital Gains (LTCG) tax will be taxed at 20.8% with indexation (as applicable on movable property, such as gold and silver).
- Taxes on Silver ETFs (Exchange Traded Funds) - Exchange-traded Funds (ETFs) launched in 2022 which invest 92% of the fund in silver or silver-linked securities and the returns earned are classified as capital gains.
How to Calculate the Silver Price After Taxation?
The price of silver after taxation is calculated considering various other factors, such as hallmarking and making charges. Here is the formula for calculating silver price after taxation:
Rate of silver = Silver price per gram x the volume of the metal purchased x purity of the metal
FAQs on Silver GST Rate
- What is the HSN code for plain silver?
The HSN code for plain silver is 7106.
- What is the HSN code for silver ornaments?
The HSN code for silver ornaments is 7113.
- Is there GST on silver coins?
Yes, GST is also applicable on silver coins, as no commodity in India is tax-free. GST in the form STCG (Short Term Capital Gain) and LTCG (Long Term Capital Gain) is applicable while redemption of Silver ETFs (Exchange Trade Funds).
- What is the VAT on silver?
The state government levies value-added tax (VAT) on silver while purchasing and the VAT amount varies from one state to another. VAT is eliminated with the implementation of GST on silver.
- How is silver taxed in India?
Silver is taxed in India as per applicable GST rate of 3.00%.
- What is the HS code for scrap silver?
The HS Code for scrap silver is 71129900.
- How many digits are there in the HSN code in GST?
All the eight digits of the Harmonized System Code (HSN) should be declared in every tax invoice that must be issued to the taxpayer under GST and is mandatory in case of export and imports under the GST.
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