The GST Council, chaired by Finance Minister Nirmala Sitharaman, recently announced major changes to India’s indirect tax system. The goal is to simplify compliance, reduce confusion, and bring more clarity to consumers and businesses. But what about gold jewelry and lab-grown diamond jewelry? Let’s take a closer look.
Lab-grown diamonds are eco-friendly, affordable, and ethically sourced alternatives to mined diamonds.
Recent GST Council Announcements: Key Highlights
- A streamlined two-tier GST system has been introduced with slabs of 5% and 18%, applicable from September 22, 2025, for most goods and services.
- A separate 40% slab will apply to certain sin and luxury goods, such as tobacco, luxury vehicles, and carbonated drinks.
- These reforms focus on simplification and reducing tax complexities for general consumer categories.
👉 However, there was no direct mention of jewelry-related GST rates in these announcements.
A ring is a circular band of metal, often crafted in gold, silver, or platinum, and sometimes adorned with diamonds or gemstones, symbolizing love, style, or personal expression.
GST on Gold Jewelry
- Under the existing GST framework, gold jewelry is taxed at 3% GST, charged on the total invoice value—including the cost of gold, making charges, and other additions.
- This rate remains unchanged. Gold jewelry does not fall under the general consumer categories affected by the new 5% or 18% slabs, nor under the 40% luxury slab, unless explicitly revised in future notifications.
Enamel colours in jewelry refer to the vibrant, glass-like finishes applied to metal surfaces, creating designs that range from soft pastels to bold, glossy hues. They add artistic detail, durability, and a splash of colour to fine and fashion jewelry.
GST on Lab-Grown Diamond Jewelry
- Lab-grown diamonds (HSN 7104) attract 0.25% GST in their rough or polished form.
- Once crafted into jewelry, they are classified under HSN 7113 (diamond jewelry) and taxed at 3% GST, the same as natural diamond jewelry. This tax is calculated on the entire invoice value (diamond cost + metal + making charges).
- As of now, there has been no separate or reduced GST rate specifically introduced for lab-grown diamond jewelry.
It is worth noting that the Gem & Jewellery Domestic Council (GJC) has recommended lowering the GST on jewelry from 3% to 1% and creating a concessional slab for lab-grown diamonds. However, this remains a proposal and has not yet been accepted by the Council.
GST Rate Summary
| Item | Current GST Rate | Change in Latest Announcement? |
| Gold jewelry (ornaments, bangles, necklaces, etc.) | 3% | No change |
| Lab-grown diamond jewelry | 3% | No change |
Bracelets are versatile jewelry pieces worn around the wrist, available in styles ranging from delicate chains and bangles to bold cuffs and charm designs. They can be crafted in gold, silver, platinum, or even adorned with diamonds, gemstones, and enamel for a touch of elegance or everyday fashion.
Final Answer
- Gold jewelry continues to attract 3% GST, with no revision under the new slab system.
- Lab-grown diamond jewelry is also taxed at 3%, with no special concession introduced.
- Despite ongoing industry requests for a reduction, the GST rates on jewelry remain unchanged in the latest reforms.
For jewellers, traders, and consumers, this means business as usual—until any future notifications announce a revision. for more information visit parikh je.