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To encourage overseas trade, the GST Council has waived GST on exports of gold, silver, and platinum.
Silver holds a lot of cultural importance in India. (Photo Credit: X)
When it comes to auspicious metals, both gold and silver have a role to play in Indian cultural traditions. People use silver items to decorate their homes during festivals and often give items made of the precious metal as a gift. Silver jewellery, with its classic beauty, has been loved for generations. Because silver holds both cultural and emotional value, it is helpful to know the tax rules related to buying and selling silver in India.
GST on Silver in India
Silver ornaments are subject to goods and services tax (GST) during both manufacturing and sale. Currently, a 3 per cent GST is charged on the value of silver, while jewellery-making charges attract an additional 18 per cent GST.
Example: Suppose Nitya purchases silver worth Rs 500. She pays 3 per cent GST (Rs 15), making her total cost Rs 515. If she decides to sell the silver after seven months and the price hasn’t changed, she will get Rs 500—because GST does not apply when individuals resell silver.
Export Exemption: To encourage overseas trade, the GST Council has waived GST on exports of gold, silver, and platinum.
Different Ways to Invest in Silver
Silver is seen as a practical and affordable option for long-term investment. Its value tends to grow over time, making it appealing to many. If you are thinking about putting your money into silver, here are some common methods:
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Silver Jewellery: Buying silver jewellery isn’t just for style—it also lets you hold a physical asset. Just make sure the quality is good. Look for a 925 stamp, which means the silver is 92.5 per cent pure, also known as sterling silver.
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Silver Coins or Bars (Bullion): If you want a simple investment route, silver coins and bars are a good choice. They are available at banks and authorised sellers. The best part is they don’t come with making charges like jewellery, making them more cost-friendly.
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E-Silver: This is a digital way to invest in silver. You don’t need to worry about storing it physically or paying for making charges. It’s a convenient and modern investment option.
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Silver ETFs: Silver Exchange Traded Funds (ETFs) are also a popular option. These funds invest most of their money—at least 95 per cent—in physical silver or related instruments. The value of these ETFs changes with the market price of silver, offering flexibility and easy buying or selling through the stock market.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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Delhi, India, India
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