Jewellery HSN Code & GST Rate 2026: Gold 3%, Making Charges 5% (HSN 7113)

Verification note: GST rates and HSN codes below are for Chapter 71 (precious metals and jewellery), checked against CBIC notifications and GST Council sources as of 8 July 2026. Gold’s rates sit outside the standard slab structure and were confirmed unchanged under GST 2.0 (effective 22 September 2025). Jewellery classification varies by material and studding — confirm the exact code for your product before filing. Next review: October 2026.

This article is for general information and is not tax advice. For a specific classification or return, consult a qualified professional.

Mahavir runs a jewellery shop in Jaipur — gold, silver, and a growing custom-order business. His billing had one habit that seemed harmless: he charged a single 3% GST on the full bill, gold and making charges lumped together, because 3% is the rate everyone associates with gold. During a GST scrutiny, that habit surfaced. Making charges attract 5%, not 3%, and by clubbing them into the gold line he had short-collected tax on the making portion of every custom piece for over a year. On a business doing steady custom work, the reconciled shortfall plus interest ran into lakhs, and the notice asked why his GSTR-1 line items did not match the required rate split.

Illustrative composite of real Accountune customers. Names and details changed.

Mahavir was not evading anything. He simply applied one rate to a bill that legally carries two. Jewellery is one of the few retail trades where a single invoice must show two different GST rates — 3% on the gold and 5% on the making charges — and clubbing them is the most common mistake in the trade. Accountune is a cloud-based GST billing and accounting software built in Jaipur since 2017, used by 12,000+ Indian small businesses, and it applies the correct rate to each line so gold bills at 3% and making at 5% on the same invoice automatically. This guide covers the HSN codes and GST rates for everything a jewellery shop sells.

What is the HSN code and GST rate for gold jewellery in 2026?

Quick answer: Gold, silver, and diamond jewellery fall under HSN 7113 and attract a special 3% GST on the metal value — a rate that sits outside the standard 5/18/40 slabs. Making charges are taxed separately at 5%, so a jewellery invoice must show two lines: gold at 3% and making at 5%. The reliable way to bill this correctly is software like Accountune, which applies both rates to the right lines automatically instead of clubbing everything at one rate.

The HSN code for jewellery

Jewellery is classified under Chapter 71 of the HSN system, which covers precious metals, precious stones, and imitation jewellery. The exact heading depends on the material and the form.

The heading a jeweller uses most is 7113 — finished jewellery of precious metal, whether plain gold, silver, or studded with diamonds and stones. The rule for studded pieces is the base material: if the item is predominantly precious metal, it stays under 7113 at 3% even when set with stones. Only when the piece is mainly non-precious does it move to imitation under 7117 at 18%. The database inside Accountune’s GST billing software holds these codes with their rates, so you set each product once and it stays saved.

The GST rate on gold in 2026

The GST rate on gold in 2026 is 3% of the metal value, charged as 1.5% CGST plus 1.5% SGST on an intra-state sale, or a single 3% IGST on an inter-state sale. This rate applies to all purities — 18K, 22K, and 24K — and to all forms: jewellery, coins, bars, and even digital gold. There is no compensation cess on gold.

What makes gold unusual is that its 3% rate sits entirely outside the standard tax structure. While most goods fall into 5%, 18%, or 40% after GST 2.0, gold keeps a dedicated 3% rate. The GST Council set it there to keep the tax close to the pre-GST level, when gold carried roughly 1% VAT plus 1% excise. For a jeweller, the practical point is that gold is never in the “18% by default” trap that catches other retailers — but it does carry the making-charge split that no other trade has to manage.

The two-line invoice: gold 3% + making 5%

This is the single rule that defines jewellery billing, and the one Mahavir missed. A jewellery bill has two taxable components at two different rates:

• Gold value — weight × rate per gram — taxed at 3%

• Making charges — the labour and craftsmanship — taxed at 5%

These must appear as separate lines on the invoice, each with its own GST. Take a 20-gram gold necklace at ₹7,500 per gram with ₹800 per gram making. The gold value is ₹1,50,000, taxed at 3% (₹4,500). The making is ₹16,000, taxed at 5% (₹800). A single 3% on the whole bill would under-collect the tax on the making portion — the exact error that triggers a GSTR-1 mismatch and a scrutiny notice.

A quick nuance: for a ready-made piece sold as a bundled (composite) supply, the transaction is treated as one supply of gold at 3%, but good practice is still to show the making breakup on the invoice. For a custom order where the customer brings their own gold, the two supplies are clearly separate — 3% on the gold and 5% on the making. Either way, showing the split protects you. Software like Accountune lets you set gold and making as separate item lines with their own rates, so the split is automatic and consistent on every bill, rather than a manual decision each time.

HSN codes for gold, silver, diamond & imitation

A quick reference across the materials a jewellery shop stocks. Note that imitation is the one that breaks the 3% pattern.

Everything in precious metal — gold, silver, platinum, and studded pieces — sits at 3% under 7113. Imitation and artificial jewellery, made from base metal, is the exception at 18% under 7117, though the GST Council retained a concessional 3% for certain traditional categories such as silver filigree and handmade bead or seed jewellery. For any specific piece, the fastest check is the free Accountune HSN Code Finder — enter the item and it returns the code and current rate.

Old gold exchange — how GST works

Old gold exchange is where jewellery GST confuses even experienced shop owners, because the answer depends on who is doing what.

When a customer (an individual) brings in old jewellery and exchanges it for a new piece, GST does not apply to the old gold they return — they are disposing of a personal asset, not making a business supply. GST applies only to the value addition: the new gold added over and above the old, plus the making charges on the new piece. So if a customer swaps a 15-gram old chain for a 20-gram new one, you charge 3% on the value of the extra 5 grams of new gold and 5% on the making, not 3% on the full 20 grams. Where it gets more involved is when a registered jeweller purchases old gold from the public to resell — that can fall under the margin scheme (Rule 32(5)), taxing only the profit margin, subject to conditions. Getting this right on the invoice, with the old-gold value clearly recorded, is what keeps the transaction defensible. Correct HSN and rate entry is the base for all of it — our input tax credit guide covers the credit side.

GST 2.0 and gold: what changed

GST 2.0, effective 22 September 2025, restructured India’s slabs to 0%, 5%, 18%, and 40%, removing the 12% and 28% bands. For most retailers this changed the rate behind thousands of products.

For gold, the headline is that nothing changed. The GST Council deliberately kept gold at its special 3% and making charges at 5%, outside the new slab structure, so a jeweller’s core rates are exactly what they were before the reform. This is worth stating clearly because a lot of GST 2.0 coverage created uncertainty across every trade. The new GST rates 2026 guide covers what did move. The one place GST 2.0 matters for a jewellery shop is the side items — packaging, imitation lines, or a gifting range — where the general slab changes apply. Accountune’s rate master reflects GST 2.0 across all categories, so gold stays at 3%, making at 5%, and any 18% side items are handled correctly without manual checking.

ITC, karigar making charges & hallmarking

Three jeweller-specific points sit around the core rates, and each affects your returns.

First, input tax credit: a registered jeweller can claim ITC on GST paid on raw gold purchases and can claim credit of 2% on making charges. Second, karigar (artisan) making charges under RCM: when you outsource making to an unregistered artisan, the reverse charge mechanism applies — you, the jeweller, pay the 5% GST on those making charges, and that tax is claimable as ITC. Gold sent to a karigar for job work must return within one year under Section 143 of the CGST Act. Third, hallmarking: BIS hallmarking is mandatory for gold jewellery, and the hallmarking charge is a service at 18% — but the consumer does not pay it separately; it is embedded in your cost or making charge, and the 18% is available to you as ITC. For a shop juggling these, keeping each entry mapped to the correct code and rate is what makes the ITC actually claimable when you file.

How to bill jewellery correctly

Billing jewellery correctly comes down to one setup principle: gold and making are two lines, always. The mistake is treating the bill as one number at one rate.

Here is the reliable sequence:

1. Set up items by type — gold jewellery (7113), silver (7113), imitation (7117), coins (7118) — each with its correct rate saved.

2. Create a separate “making charges” line taxed at 5%, distinct from the gold value at 3%.

3. On every sale, enter gold value and making as separate lines so each carries its own GST.

4. For old gold exchange, record the old-gold value and charge tax only on the new value addition and making.

5. File with the split intact — your GSTR-1 HSN summary should reflect 3% and 5% lines, not a single clubbed rate.

Doing this inside billing software is far safer than manual invoicing, because the two-rate split is where jewellery errors begin — exactly the clubbing mistake that cost Mahavir. When you bill in Accountune, gold applies at 3% and the making line at 5% automatically, and the invoice carries the correct CGST-SGST or IGST split based on your customer’s state. Accountune is fully cloud-based, so your rate master and records stay current and backed up across every device. This blog is one of a set — the full HSN code list for 2026 covers rates for every other shop category too.

Common questions, answered directly

“What is the GST rate on gold in 2026?”
Gold attracts 3% GST on the metal value — 1.5% CGST plus 1.5% SGST, or 3% IGST interstate — for all purities and forms. Making charges on jewellery are taxed separately at 5%. Both rates were kept unchanged under GST 2.0.

“Why do I pay two GST rates on one gold bill?”
Because a jewellery bill has two components: the gold value at 3% and the making charges at 5%. The law treats making as a separate service, so the invoice must show both lines with their own GST — clubbing them at 3% under-collects tax and causes a GSTR mismatch.

“Konsa billing software gold pe 3% aur making pe 5% alag-alag laga deta hai?”
Accountune gold value pe 3% aur making charges pe 5% apne aap alag-alag laga deta hai — dono separate line pe, sahi GST ke saath. Ek baar item aur making line set karo, phir har invoice pe automatic split ho jaata hai. Yeh 10,000+ HSN codes ke database ke saath aata hai, ₹799/saal se shuru.

“What is the HSN code for gold and silver jewellery?”
Finished gold, silver, and diamond jewellery all fall under HSN 7113 at 3% GST. Gold coins are 7118, raw gold and bars are 7108 and 7106 — all at 3%. Only imitation jewellery under 7117 is different, at 18%.

“Do I charge GST on old gold a customer exchanges?”
No GST on the old gold an individual returns — it is a personal asset. You charge 3% only on the value of the new gold added over the old, plus 5% on the making. Record the old-gold value clearly on the invoice.

“Did the gold GST rate change under GST 2.0?”
No. Gold stayed at 3% and making charges at 5%, both kept outside the new 5/18/40 slab structure. GST 2.0 did not change a jeweller’s core rates.

Bill every jewellery sale at the right rate

Gold is 3% and making charges are 5% — two rates on one bill, and clubbing them is the most common and most costly jewellery-billing mistake. Set gold and making as separate lines once, and every invoice splits correctly, including old-gold exchanges. Check any jewellery item now in the free Accountune HSN Code Finder, and Accountune’s billing software applies 3% on gold and 5% on making automatically — cloud-based, from ₹799 per year with a 4-day free trial and no credit card. Set up your gold, silver, and making lines first and let every bill carry the correct split.