At House of Diana, we take pride in offering beautifully crafted sterling silver jewellery - anklets, chains, pendants and more - with transparent pricing. Naturally, one common question from buyers is: How much GST do I actually pay on my silver jewellery purchase after the recent GST 2.0 reforms?
In this post, we demystify the revised tax structure, explain how GST works on silver items, and show sample calculations so you know exactly what to expect when you shop with us.
What is GST 2.0? Does it change the GST on Silver Jewellery?
In September 2025, the Indian GST regime underwent a major overhaul - often referred to as GST 2.0 - which consolidated various slabs and rationalised tax rates across many categories.
Under this reform:
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The multiple old GST slabs (0%, 5%, 12%, 18%, 28%) were rationalised, with many goods moved into simpler slabs like 5% and 18%.
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A 40% “de-merit / luxury / sin goods” slab was introduced for some select items.
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However, the jewellery / precious metals sector (gold, silver, etc.) was specifically excluded from sweeping changes. The GST Council maintained the existing special tax regime for precious metals.
In short: while many everyday goods saw changed tax rates under GST 2.0, silver jewellery’s GST treatment has remained largely unchanged.
Current GST rates applicable to silver jewellery (post GST 2.0 reforms)
As of the latest notifications and expert commentary:
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Silver (metal / intrinsic value) - taxed at 3% GST
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Making / labour / fabrication charges (i.e. the cost of converting silver into jewellery) - taxed at 5% GST
This two-component tax structure (3% + 5%) is what applies both before and after GST 2.0 (i.e., it was retained).
To summarise:
|
Component |
Tax Base |
GST Rate |
|
Silver (metal) value |
Price of silver in the jewellery |
3% |
|
Making / fabrication / labour charges |
The markup or labour used to craft the piece |
5% |
When you buy silver jewellery (e.g. from House of Diana), the final invoice may separately show the metal price, the making charges, and the GST on each.
Why the special regime for jewellery & precious metals?
You might wonder: why does silver jewellery get this special tax treatment, instead of falling into the new flat slabs (5%, 18%, 40%)? The reasons include:
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Volatility of metal prices: Precious metals like silver and gold have highly volatile spot prices. The special regime helps maintain stability and predictability for both jewellers and consumers.
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Industry sensitivity & tradition: The gems & jewellery sector is considered strategic and sensitive. Sudden tax changes could dramatically affect demand and supply.
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Parity with gold taxation: Gold jewellery already has a longstanding two-component tax (3% on metal, ~5% on making), and silver is treated analogously.
Hence, while many goods were shifted under GST 2.0, silver jewellery remained under the older regime.
How to compute GST on silver jewellery: worked examples
Let’s see how this applies in practice - especially with House of Diana’s style of product listings (sterling silver anklets, silver pendants etc.).
Example 1: Simple pendant
Assume:
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Silver metal value (intrinsic) = ₹2,000
-
Making / labour / crafting charges = ₹300
Step 1: GST on silver metal value
3% of ₹2,000 = ₹60
Step 2: GST on making charges
5% of ₹300 = ₹15
Step 3: Total price
Base total = ₹2,000 + ₹300 = ₹2,300
Add GST = ₹60 + ₹15 = ₹75
Final invoice value = ₹2,300 + ₹75 = ₹2,375
So, your invoice would show something like:
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Silver cost: ₹2,000
-
Making charges: ₹300
-
GST on silver (3%): ₹60
-
GST on making (5%): ₹15
-
Total payable: ₹2,375
Example 2: Sterling silver anklet (House of Diana style)
Let’s say House of Diana offers a delicate anklet at a base price (metal + making) of ₹1,500 (this includes silver + workmanship). Suppose the breakdown is:
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Silver content = ₹1,200
-
Making charges = ₹300
Then:
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GST on silver: 3% of ₹1,200 = ₹36
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GST on making: 5% of ₹300 = ₹15
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Total invoice = ₹1,500 + ₹36 + ₹15 = ₹1,551
So the customer pays ₹1,551 at checkout.
Note: In real invoices, jewellers may internally compute a split, but often you’ll see a consolidated “GST 3% (metal) + 5% (making)” or just “GST applicable as per law” along with the quoted price. At House of Diana, you’ll see “tax included” in many listings, so the displayed price already includes these components.
Impacts of GST 2.0 on Silver Jewellery demand and pricing
Although GST 2.0 did not change the silver jewellery tax rates, its broader effects may indirectly influence the market. Some potential effects:
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Better affordability of other goods - With many everyday items moved to lower slabs (5% or 18%), consumers may have more disposable income. That can boost demand for discretionary items like silver jewellery.
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Competitive pricing pressure - As retailers try to attract customers in a more price-sensitive environment, there may be more offers, discounts or bundling, which can benefit jewellery buyers indirectly.
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Stable cost structure for jewelers - Since their GST burden remains unchanged, jewellers can maintain margin stability, without needing to reconfigure their cost models drastically.
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Greater transparency - The reforms brought more clarity to GST slabs and transitions; consumers are more aware of tax inclusions. This can press jewellers to be more transparent in invoices.
In summary: while your silver jewellery tax cost remains the same under GST 2.0, the overall retail ecosystem might become more favourable to the buyer.
