GST for Gold and Silver Bullion Traders in India: Rates, Records, and Reports

GST compliance adds a layer on top of the hisaab a bullion trader already keeps. The rate itself is simple compared to most goods, but getting invoice-level records right — HSN codes, purity-wise value, and making charges kept separate from metal value — is where most of the actual work sits.

GST Rates on Gold and Silver Bullion

As of the most recent update available, gold and silver bullion attract GST at 3% on the value of the metal itself, whether traded as bars, coins, or raw bullion. Making charges — relevant where jewellery or job-work processing is involved — are taxed separately at 5%. For finished jewellery sold at retail, the making charge is typically treated as part of a single supply and taxed at the jewellery's overall rate rather than billed as a separate line, so how you invoice matters as much as the rate itself.

These are the commonly cited current rates; they are exactly the kind of figures you should verify are still current with your CA before relying on them for filing, since GST Council rate revisions do happen.

HSN Codes for Gold and Silver

Gold in its bullion, bar, and coin forms is generally classified under HSN chapter 7108, and silver under 7106. The exact code can vary by specific product form (raw bullion vs. semi-manufactured vs. finished article), so confirm the precise HSN code for each product line you invoice with your CA rather than assuming one code covers everything you sell.

What Records a Bullion Trader Needs for GST

Regardless of the exact rate in force at any given time, the underlying records a GST-ready ledger needs per transaction stay the same:

• HSN code for the specific metal and product form
• Taxable value — the metal value, separate from making charges where applicable
• GST amount charged, split by rate where more than one rate applies to a single invoice
• Party GSTIN, where the counterparty is GST-registered
• Invoice date and sequential number, matching your filing period

A ledger that captures purity, weight, and rate for hisaab purposes is most of the way there already — the additional fields are HSN code and the tax amount itself, kept as explicit columns rather than folded into a single "amount" figure.

Making Charges and Job-Work GST

For refineries and traders who send metal out for processing — melting, refining, or converting raw bullion into bars or coins — job-work charges are a separate taxable supply from the metal value itself. Keeping refining vouchers and processing charges as distinct line items, rather than bundled into a single settlement figure, is what makes this reconcilable at filing time.

How Digital Ledgers Simplify GST-Ready Reporting

The practical benefit of a digital ledger over a paper one at filing time is not the GST calculation itself — it is having every invoice's HSN code, taxable value, and tax amount already captured at the point of entry, so generating a period's sales register or purchase register does not mean re-checking every paper voucher by hand.

Bullion Master's Reports Center generates day book, sales register, and purchase register views with this structure already in place, aimed at keeping records audit-ready without a separate reconciliation pass before filing.

Frequently Asked Questions

Is GST charged on the full invoice value or only on making charges?
Both the metal value and making charges are taxable, but they can carry different rates and should usually be shown as separate line items rather than one combined figure — confirm the correct invoicing format with your CA.

Do I need a different GST rate for gold versus silver?
Commonly cited current rates treat gold and silver metal value the same way at 3%, though this should be verified for your specific filing period rather than assumed to be permanent.

Does old gold exchanged by a customer attract GST differently?
Purchases from unregistered individuals can carry different treatment than registered-to-registered trade. This is case-specific — check with your CA rather than applying a blanket assumption.