What’s the Deal with GST on Diamond Jewellery?
Let’s be real — buying diamond jewellery is exciting, but the tax talk? Not so much. Yet, understanding how much Goods and Services Tax (GST) you pay on diamond jewellery can save you from wallet shock and confusing bills. Here’s the lowdown straight from the best sources like Fi.Money and IndiaFilings.
GST Rate on Diamond Jewellery: The Straight Facts
Brace yourself: The GST rate on diamond jewellery is a flat 3%. This isn’t just on the sparkling diamond you peeked at; it covers the entire invoice value — including the diamond, the precious metal (gold, platinum, or silver), and the making charges.
According to ClearTax, this 3% is pretty standard across the board for diamond jewellery in India. But wait, there’s more nuance than just a flat rate.
Breakdown by Diamond Type
- Diamond Jewellery (Set Diamonds): 3% GST on the total invoice (diamond + metal + making charges).
- Loose, Unworked Diamonds: Only 0.25% GST applies since they haven’t dazzled in a setting yet.
- Cut and Polished Diamonds (Not Set): Some sources mention 1.5%, but commonly it’s still 0.25%—think of it as a sparkle tax prerelease.
- Making Charges: Included inside the 3% GST if part of the jewellery invoice. Some vendors might list 5%, but official sources point towards 3% as inclusive.
So when you’re checking out that diamond ring or a dazzling necklace, remember: it’s the full package taxed at 3%. You can confirm your bill calculations with reliable GST calculators, like the one on Fi.Money.
HSN Codes and Why They Matter
GST isn’t just a number — it’s linked to HSN codes that categorize products for taxation. For diamond jewellery, the key codes are:
- HSN 7113: Set diamond jewellery
- HSN 7104: Loose diamonds, whether rough or polished
These codes ensure correct GST rates are applied and help avoid mix-ups — handy if you’re a retailer or a tax nerd.
GST on Making Charges: What’s the Score?
Making charges are the fees you’re charged for craftsmanship — the magic that turns a diamond and metal into wearable art. Typically, making charges used to attract 5% GST separately, but as per expert blogs like Jewelove and CAGMC, this is often bundled into the 3% total GST charged on diamond jewellery.
Of course, always ask your jeweler for a clear breakup on your invoice. Transparency is key to avoid surprises!
GST Variations on Lab-Grown Diamonds and Special Cases
Lab-grown diamonds, the eco-friendly kamikazes of the diamond world, attract GST too but with a slightly different twist. Loose lab-grown diamonds face a GST of 0.25% (same as natural loose diamonds), but once set into jewellery, the rate jumps to 3%, just like natural diamond jewellery. This info is well explained by Delmer Group.
GST Impact on Diamond Jewellery Shopping: Real-World Tips
Here’s where your uncle turns guru: Understanding GST can help you shop smarter, not just buy shinier. Consider the following when browsing your next diamond treasure:
- Invoice Scrutiny: Verify if GST is charged correctly at 3% on the final invoice amount.
- Making Charges: Confirm whether they are included in the GST or separately taxed.
- Compare Sellers: Some jewelers might list separate taxes or fees — transparency wins.
- Look for Offers: Sometimes, jewelers bundle discounts or gifts like a Return Gift Collection while you invest in your sparkle.
- Storage Choices: Preserve your new diamond safely with a premium Jewellery Box Collection or a Wooden Jewel Box of craftsmanship that matches your bling.
If you want to dive deeper into jewellery buying wisdom, check out our in-depth guides like How to Buy Gold Jewellery in India: A Savvy Shopper’s Guide or navigate the online buying scene with How to Buy Gold Jewellery Online.
Where to Buy Diamond Jewellery with GST Insights in Mind
Now that you know the tax scoop, it’s time to shop savvy. Whether in India or globally, be sure to check trusted affiliate links for great selections with transparent pricing:
Wrapping It Up (No Pun Intended)
So, the next time your shiny diamond lands on the balance sheet, remember: it’s 3% GST on that total glamour package — the rock, the metal, and the artist’s touch. If you keep these GST basics in mind, your radiant purchase will shine on, minus any pesky tax confusions.
Ready to sparkle responsibly? Check out our recommended Jewellery Boxes to keep your treasures safe!