GST on Gold Jewelry and Lab-Grown Diamond Jewelry: Latest Updates After GST Council Reforms

The 56th GST Council meeting held in September 2025 brought major changes to India’s indirect tax structure. With the introduction of simplified slabs, businesses and consumers across sectors are eager to know whether GST rates on gold jewelry and lab-grown diamond jewelry have been revised. Here’s a clear breakdown of what has changed—and what hasn’t.

Jewelry manufacturing services attract 5% GST on the job work charges, covering processes like casting, polishing, and finishing.

Recent GST Council Announcements – Overview

• The Council, led by Finance Minister Nirmala Sitharaman, approved a streamlined GST system featuring two primary slabs: 5% and 18%, effective September 22, 2025, for most goods and services.
• A third 40% slab was introduced for specific sin and luxury goods such as premium cars, tobacco, and carbonated beverages.
• These reforms aim to simplify India’s tax structure and ease compliance.

👉 Important Note: The announcements did not include jewelry items such as gold or diamonds in the revised GST list.

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GST on Gold Jewelry

• Current Rate: Gold jewelry continues to attract 3% GST under HSN 7113.
• How it’s calculated: The tax is applied on the total invoice value, which includes the gold cost, making charges, and other additions.
• Any change? No revisions were announced for gold jewelry in the recent two-slab system. Since jewelry falls outside standard consumer goods categories, it does not shift into the 5%, 18%, or 40% slabs unless explicitly stated by the GST Council.

GST on Lab-Grown Diamond Jewelry

• Loose lab-grown diamonds (HSN 7104): Taxed at 0.25% GST.
• Lab-grown diamond jewelry (HSN 7113): When set into jewelry, the rate moves to 3%, the same as natural diamond jewelry. This is calculated on the full invoice value (diamond cost + precious metal + making charges).
• Any change? No separate concessional rate has been introduced for lab-grown diamond jewelry.

📌 The Gem & Jewellery Domestic Council (GJC) has requested a reduction of jewelry GST from 3% to 1%, along with a concessional rate for lab-grown diamonds, but this remains only a proposal—not a policy change.

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GST Rate Summary

Final Answer

• Gold jewelry continues to attract 3% GST, with no revision under the new two-slab system.
• Lab-grown diamond jewelry also remains taxed at 3%, with no concessional rate introduced so far.
• While the Council’s rationalisation simplified tax categories for many goods, jewelry rates remain unchanged as of September 2025.

For jewellers, manufacturers, and buyers, this means business continues under the same GST structure for both gold and lab-grown diamond jewelry.

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