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Key Highlights
- Silver is a precious commodity which is used in many ways. Knowing the HSN codes and GST rates is important.
- By visiting the GST portal, you can get the complete list of HSN codes.
- The applicable GST rate on silver is 3% in every form and on all types of articles.
- The GST rate is added to the price of silver to find the final price that you pay when you buy the metal.
Goods and services tax (GST) has removed the cascading effect of taxes on all goods and services, including silver. In the old indirect tax regime, taxes on silver were charged at multiple levels, which included excise duty, VAT (value-added tax), etc. Moreover, rates were applied at the discretion of the state.Due to this, a lot of inconsistency was created, and the price of silver varied across states. After the implementation of GST in India, a standardised GST rate of 3% was implemented throughout India. This made it easier to buy and sell silver.The HSN rates are codes which help classify silver and its articles for GST filing. The codes are different for different types of silver products. So, let's check out the applicable HSN codes and GST rates on silver products. Also Read - Find out the impact of GST on service providers
GST Rates and HSN Codes of Silver
The table below specifies the HSN (harmonised system of nomenclature) codes for classifying different goods of silver:
| HSN Code | Description | GST Rates |
| 7106 | Silver (Including silver plated with gold or platinum), unwrought or in semi-manufactured forms, or in powder form | 3% |
| 710610 | Powder | 3% |
| 71061000 | Powder | 3% |
| 710691 | Unwrought: | 3% |
| 71069100 | Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured forms, or powder form - other: unwrought | 3% |
| 71069110 | Grains | 3% |
| 71069190 | Other | 3% |
| 710692 | Semi-manufactured : | 3% |
| 71069210 | Silver (Including silver plated with gold or platinum), Unwrought or in semi-manufactured forms, or in powder form semi-manufactured: sheets, plates, strips, tubes and pipes. | 3% |
| 71069220 | Bar | 3% |
| 71069290 | Other | 3% |
How to Find HSN Codes Online?
If you want to find the HSN code of a particular item of silver, you can do so online through the GST portal. Here are the steps:
- Step 1: Visit the GST portal
- Step 2 : Click the 'Services' tab on the dashboard.
- Step 3: Select 'User Services'
- Step 4 : You will reach the HSN search page.
- Step 5 : Download the HSN directory in Excel format.
- Step 6 : Search the HSN code by (i) the HSN chapter code or (ii) the Description.
- Step 7: When searching by HSN code (use your Excel sheet) and enter the appropriate captcha, then search.
- Step 8 : The results would appear under the chapter head, showing the product description, HSN code, technical description, trade description and other related HSN codes.
- Step 9 : When searching the HSN chapter by description, select the goods or services tab, enter the description of goods or services, enter the appropriate captcha, and search.
- Step 10 : Search results would appear under the chapter head showing product description, HSN code, technical description, trade description and other related HSN codes.
GST Calculation on Silver
To find the applicable GST on silver, you will have to first, find the cost of silver. This is done by the following formula - Silver price =Price per gram x Volume (grams) x Purity of Silver.Once you have the silver's price, you can find the GST payable. Since the GST rate is 3%, the GST payable will be 3% of the silver's price. GST on silver - 3/100 x the price of Silver.Add together the total silver price and the applicable GST, and you will get the actual amount payable for your purchase. Also Read - Check out some of the disadvantages of GST
GST on Silver's Making Charges
Making charges are levied on different types of silver products. GST is also applicable on the making charges since they are a form of service. The GST rate is 5% on the making of silver jewellery.So, if you buy silver jewellery or other items, you will have to add the making charges and the GST on the making charges to get the total price.
Knowing the GST Rates and HSN Codes on Silver
In India, silver is considered a precious metal and is often used for gifting, asset creation and also for investments. Knowledge of the HSN code of silver and its related products helps in the differentiation and proper filing of GST returns.So, if you are in the business of selling silver, it is better to know the applicable HSN codes based on the items that you sell. For buyers, knowledge of the GST rates on silver and its making charges would help in informed purchases.The GST portal helps you find the HSN codes easily if you don't know them. You can also file your GST returns online for ease and convenience. To know your GST liability, use the online GST calculator and find out what you owe for easier return filing.
FAQS - FREQUENTLY ASKED QUESTIONS
What are the GST rates on exports of silver?
Silver exports on silver are generally exempted from GST, promoting international trade.
What are the factors which are affecting the prices of silver in India?
Some factors that affect the prices of silver in India are the country's economic conditions, supply and demand for silver, and global industrial usage.
How to invest in silver?
You can invest in silver by buying silver coins and bars, silver ETFs, and mining stocks.
What is the HSN code for silver ornaments?
The HSN code for silver ornaments is 7113.
What is the HS code for scrap silver?
The HS Code for scrap silver is 71129900.
Do silver coins have a different HSN code than jewellery?
Yes, silver coins have a different HSN code compared to silver jewellery. The code is 7110.
What kinds of silver purity standards are there?
There are four types of silver purity, which are as follows:-
(a) Fine Silver: 99.9% Silver (Hallmark - 999)
(b) Britannia Silver: 95.8% Silver (Hallmark - 958)
(c) Sterling Silver: 92.5% Silver (Hallmark - 925)
(d) Jewellery Silver: 80% Silver (Hallmark - 800)
My business exports silver. Will I need another HSN code?
No, there is no separate HSN code for exports. You can use the same codes and export your articles.
Do silver dental implants have a different HSN code?
Yes, silver dental implants have a different HSN code. It is not similar to silver.
What is the HSN code for silver bullion?
The HSN code applicable for silver bullion is 7106.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
