GST and import duties on diamonds in India: the complete tax guide

GST rates applicable to diamond jewellery in India

The 3% jewellery rate

Diamond jewellery, whether gold set, platinum set, or white gold set, is classified under HSN (Harmonised System of Nomenclature) code 7113 ("Articles of Jewellery and Parts Thereof, of Precious Metal or of Metal Clad with Precious Metal"). The GST rate under HSN 7113 is 3 percent (CBIC GST rate schedule, Notification under CGST Act, cgst.gov.in; verified at cbic.gov.in).

This 3 percent applies to the total invoice value of the jewellery article, which includes the gold or platinum value, the diamond value, and any other material cost included in the piece. It does not apply separately to each component; it applies to the combined value of the complete jewellery article as invoiced.

The 5% making charges rate

Making charges, the manufacturing labour cost for producing the jewellery, are subject to 5% GST when charged separately on the invoice under HSN code 9988 (manufacturing services on goods belonging to others, job work) or 9983 (professional services). When making charges are included within the total jewellery price without separate itemisation, the combined value is taxed at 3% as part of the jewellery article (CBIC GST circular on job work rates; cbic.gov.in).

The distinction matters: if a jeweller charges ₹3,00,000 for the ring as a single all-inclusive price, the entire ₹3,00,000 is taxed at 3%. If the jeweller separately itemises ₹2,80,000 for the jewellery value and ₹20,000 for making charges, the GST is: ₹2,80,000 × 3% = ₹8,400 on the jewellery plus ₹20,000 × 5% = ₹1,000 on making charges = ₹9,400 total GST. This is essentially the same outcome as the combined approach on simple calculations.

Worked examples: total cost at common purchase values

Jewellery and making charge values are illustrative examples only, actual values vary by stone quality, metal weight, and retailer. GST calculations use rates of 3% (jewellery) and 5% (making charges) as per CBIC GST notifications applicable early 2026. Verify current rates at cbic.gov.in.

Quick calculation formula

Import duties on rough and polished diamonds entering India

Rough diamonds

Rough diamonds imported into India for cutting and polishing are subject to Basic Customs Duty (BCD) and IGST (Integrated GST on imports). The current rate structure for rough diamonds under HSN code 7102 (Diamonds, whether or not worked, but not mounted or set) is as follows (CBIC Customs Tariff, cbic.gov.in; verified against applicable customs notifications):

Natural rough diamonds (HSN 7102 10 00): BCD of 5% plus applicable IGST. The IGST rate on rough diamonds for import is 0.25% (a special concessional rate to facilitate the import of rough for processing, reflecting India's status as the world's primary diamond processing hub). This concessional IGST rate applies specifically to rough diamonds imported for processing and re-export (CBIC customs notifications; GJEPC trade facilitation guidance, gjepc.org).

Polished diamonds

Polished diamonds imported into India, whether bought from an international retailer or imported for personal use, are subject to higher duties than rough. Polished diamonds (HSN 7102 39 00) attract BCD of 7.5% plus IGST at the applicable rate. For an individual importing a single polished diamond purchased abroad, customs duty would apply on the assessed value (CBIC Customs Tariff, cbic.gov.in).

This duty structure means that buying a polished diamond from an international retailer (Blue Nile, James Allen, etc.) and importing it to India is not always cheaper than buying in India, despite potentially lower pre-duty prices, the 7.5% BCD plus IGST can eliminate the price advantage for most quality combinations. The calculation depends on the specific stone's quality, current Rapaport prices, and the INR/USD exchange rate at time of import.

Key HSN codes for diamonds and diamond jewellery

Rates as per CBIC Customs Tariff and GST Council notifications applicable early 2026. HSN codes and rates are subject to revision. Verify at cbic.gov.in or through a licensed customs agent/tax professional before any import transaction.

What a legally compliant jewellery invoice must show

Under GST law, a jewellery retailer selling to a consumer must provide a tax invoice (if the transaction is taxable and the retailer is GST-registered, which all retailers with annual turnover above the GST threshold must be). The invoice must clearly show (GST Invoice Rules under CGST Act; cbic.gov.in):

The jeweller's GSTIN (GST Identification Number). The purchaser's name and address. The date of invoice. A description of the goods, jewellery type, metal, stone(s), weight(s). The HSN code for the product. The value of the jewellery (before GST). The making charges (if charged separately, with their HSN code). The GST rate applied to each component. The GST amount for each component. The total payable amount including GST.

If a retailer provides an invoice that does not show GST separately, either bundling it into the price without disclosure or failing to itemise components, this is not a legally compliant invoice. A buyer who pays GST is entitled to a compliant tax invoice that allows them to claim the GST credit if applicable or to verify the tax was correctly calculated.

Red flags on an invoice

Certain invoice characteristics should prompt questions: No GSTIN shown. No HSN code listed. No separate line items for diamond value, gold value, and making charges. GST shown as a single undifferentiated amount without the rate or tax base. Any of these make it impossible to verify the GST was calculated correctly. A properly formatted invoice from a compliant jeweller will show all components clearly.

GST on lab-grown diamonds

Lab-grown diamonds are classified under HSN 7104 (synthetic precious stones and semi-precious stones, whether or not worked or graded but not strung, mounted or set). The GST rate on loose lab-grown diamonds and lab-grown diamond jewellery differs from natural diamonds and has been subject to revision.

As of early 2026, the GST rate on lab-grown diamonds (loose) was subject to the rates applicable under HSN 7104, verify the current applicable rate at cbic.gov.in as lab-grown diamond GST rates have been a subject of GST Council discussion. Lab-grown diamond jewellery (set in metal) is taxed at the jewellery article rate under HSN 7113 as 3% on the article value, following the same logic as natural diamond jewellery (CBIC GST rate notifications; GST Council announcements 2023–2026).

Primary sources cited here

Frequently asked questions

Is GST included in the price shown on a jewellery tag?

It depends on the retailer. Some jewellers show MRP inclusive of GST; others show prices exclusive of GST with GST added at the time of billing. The safest approach is to ask explicitly before agreeing on a price: "Is GST included in this price?" If not included, calculate the GST addition using the formula above before comparing prices between stores. A store that quotes ₹3,20,000 inclusive of GST is cheaper than a store that quotes ₹3,10,000 exclusive of GST when the final bill including GST would be ₹3,40,550.

Can I claim GST input tax credit on jewellery purchased for personal use?

No. Input tax credit (ITC) under GST is available to GST-registered businesses for goods purchased in the course of their business. Personal jewellery purchases are personal consumption expenditure and do not qualify for ITC claims. Businesses that purchase diamond jewellery as gifts for employees or customers may have different ITC eligibility depending on the specific use, consult a tax professional for business-specific guidance.