Silver jewellery HSN Code

Understanding the Silver Jewellery HSN Code

Silver jewellery holds a timeless appeal, from intricate traditional designs to sleek modern pieces. For businesses involved in the manufacturing, trading, or retailing of silver jewellery in India, understanding the correct Harmonized System Nomenclature (HSN) code and the associated Goods and Services Tax (GST) rates is crucial for seamless operations and compliance. Let’s delve into the specific classifications for silver jewellery and related items.

The HSN Code for Silver Jewellery

The primary HSN classification for silver jewellery falls under Chapter 71: Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewelry; coin. This chapter is dedicated to precious materials and articles made from them.

Specifically, for articles made of precious metal, including silver, the key HSN codes are found under:

• Articles Of Jewellery And Parts Thereof, Of Precious Metal Or Of Metal Clad With Precious Metal – Of Precious Metal Whether Or Not Plated Or Clad With Precious Metal: This general heading covers genuine precious metal jewellery.
  • Of Silver, Whether Or Not Plated Or Clad With Other Precious Metal: This is the direct category for silver jewellery.
    • Jewellery With Filigree Work: HSN 71131110
    • Jewellery Studded With: HSN 71131120 (implies studded with stones, not specified if precious or semi-precious, but typically understood to be precious or semi-precious stones in this context)
    • Other Articles Of J: HSN 71131130 (This is a catch-all for other silver jewellery not covered by filigree or studded categories)
    • Parts: HSN 71131190 (for parts of silver jewellery)

It’s important to distinguish real silver jewellery from imitation and base metals.

Understanding Related Silver HSN Codes

The data also provides context for other silver-related items:

• Imitation Jewellery:
  • HSN 7117 generally covers “Imitation Jewellery.”
  • Specific sub-code 71171920 is for “Imitation Jewellery – Of Base Metal, Whether Or Not Plated With Precious Metal : Other: German Silver Jewellery.”
• Other Precious Metal Jewellery (for comparison):
  • HSN 71131910 (“Of Gold, Un…”) and 71131920 (“Of Gold, Se…”) cover gold jewellery.
• Base Metals Clad with Silver/Precious Metals:
  • HSN 71090000 for “Base Metals Or Silver, Clad With Gold, Not Further Worked Than Semi-Manufactured.”
  • HSN 71110000 and 71113% for “Base Metals, Silver Or Gold, Clad With Platinum, Not Further Worked Than Semimanufactured.”
  • HSN 71073% for “Base Metals Clad With Silver, Not Further Worked Than Semi-Manufactured.”
  • HSN 71132000 for “Articles Of Jewellery And Parts Thereof, Of Base Metal Clad With Precious Metal.”
• Unwrought or Semi-Manufactured Silver:
  • HSN 71069100 for “Silver (Including Silver Plated With Gold Or Platinum), Unwrought Or In Semi-Manufactured Forms, Or In Powder Form – Other : Unwrought.”
• Silver Compounds:
  • HSN 28432100 for “Silver Compounds: Silver Nitrate” (a chemical product).
• Silver in Electrical/Other Goods:
  • HSN 85064000 for “Primary Cells And Primary Batteries Silver Oxide” (an electrical component).
  • HSN 74198020 for “Articles Of Copper Alloys Electro-Plated With Nickel-Silver.”
  • HSN 74082220 for “Copper Wire – Of Copper Alloys : Of Copper-Nickel Base Alloys (Cupro-Nickel) Or Copper-Nickel-Zinc Base Alloys (Nickel Silver).”
  • HSN 911320% for “Of Base Metal, Whether Or Not Gold- Or Silver-Plated” (related to clocks/watches).

Understanding the GST Rates for Silver Jewellery

The GST rate for genuine silver jewellery, like other precious metal jewellery, is consistently 3%. This rate applies across all the listed silver jewellery categories (filigree, studded, other, and parts) under HSN 711311. This rate became effective from July 1, 2017.

Here’s a breakdown of GST rates for other related “silver” items:

• Imitation Jewellery:
  • General imitation jewellery (HSN 7117) has a 0% GST rate, effective from July 1, 2017.
  • “German Silver Jewellery” (HSN 71171920) is an exception, also at 3% GST, effective from July 1, 2017. This suggests “German Silver” might be treated differently due to its specific composition or historical context.
• Base Metals Clad with Silver/Precious Metals: These also attract a 3% GST rate, effective from July 1, 2017.
• Unwrought or Semi-Manufactured Silver: This is also subject to a 3% GST rate, effective from July 1, 2017.
• Silver Compounds (Chemicals): Silver nitrate (HSN 28432100) and other silver compounds are taxed at 18% GST, effective from July 1, 2017.
• Silver Oxide Batteries: These electrical components (HSN 85064000) are at 18% GST, effective from November 15, 2017.
• Silver-Plated Base Metal Parts for Clocks/Watches: These (HSN 911320%) are at 18% GST, effective from November 15, 2017.
• Copper Alloys with Nickel-Silver: These (HSN 74198020, 74082220) are at 18% GST.
• Imitation Jewellery Manufacturing Services (SAC 998893): The GST rate for these services can vary, being listed as “1.5/5/12/18” with various effective dates and conditions, similar to other manufacturing services.

The 3% GST rate for genuine silver jewellery highlights its unique classification as a precious metal article.