"Silver rate today" is one of the most searched money phrases in India this week. With Dhanteras on 6 November and Diwali on 8 November, many families are buying silver coins, while younger investors are buying silver ETFs on their trading apps. The tax on the way in and on the way out is not the same for all of them.
Silver tax at a glance
| How you hold silver | GST on purchase | Long-term after | Long-term tax | Short-term tax |
|---|---|---|---|---|
| Coins, bars, utensils, jewellery | 3% | 24 months | 12.5%, no indexation | Your slab rate |
| Listed silver ETF | None (brokerage and fund expenses instead) | 12 months | 12.5%, no indexation | Your slab rate |
| Silver mutual fund (fund of funds) | None (fund expenses instead) | 24 months | 12.5%, no indexation | Your slab rate |
Health and education cess of 4%, and surcharge where it applies, is added on top of these rates.
Buying physical silver: what to check on the bill
- GST of 3% is charged on the full bill for coins, bars and finished silver articles bought from a jeweller. If you give your own old silver to a jeweller to make something new, GST of 5% applies to the making charge as job work.
- Keep the invoice. The bill is your proof of cost and date when you sell. Without it, the whole sale price can be questioned.
- Cash and PAN rules are the same as for gold. A jeweller cannot accept ₹2 lakh or more in cash from you for one bill or one occasion, and a purchase above ₹2 lakh needs your PAN. Our Dhanteras gold guide and ₹2 lakh cash rule note explain both.
A simple example
Suppose you put ₹1,00,000 into silver this Diwali and sell it for ₹1,30,000 after 15 months.
- Silver coins: about ₹2,900 of your money goes to GST on day one, so you buy less silver. Because you sold before 24 months, the gain is short-term and taxed at your slab rate. At a 30% slab, that is a much higher tax than the long-term rate.
- Silver ETF: no GST on purchase. Because you held it for more than 12 months, the gain is long-term and taxed at 12.5%.
For pure investment, an ETF is usually cheaper to hold and becomes long-term sooner. For gifting, puja or family tradition, physical silver still makes sense. Just buy it knowing the cost.
Gifts and inherited silver
Silver received from a specified relative, or on your wedding, is not taxed in your hands. Silver received from a non-relative is taxable if the total value of such gifts in the year crosses ₹50,000. When you sell inherited silver, the previous owner's cost and holding period count as yours.
Frequently asked questions
How much GST is charged on silver coins?
GST of 3% is charged on silver coins, bars and silver articles bought from a jeweller. Silver ETFs and silver mutual funds do not carry GST on the amount invested.
When does silver become a long-term asset?
Physical silver becomes long-term after 24 months. A listed silver ETF becomes long-term after 12 months. A silver fund of funds becomes long-term after 24 months.
What is the tax on long-term gains from silver?
Long-term capital gains on silver are taxed at 12.5% without indexation, plus cess and any surcharge. Short-term gains are taxed at your slab rate.
Is a silver ETF better than buying silver coins?
For investment, a silver ETF is usually cheaper because there is no GST and it becomes long-term after 12 months. Physical silver makes sense for gifting or tradition, but you pay 3% GST and wait 24 months for long-term treatment.
How Vitt-Marg helps
We handle income-tax returns, capital gains computation, tax planning, GST and ROC compliance for individuals, businesses and companies across Noida, Ghaziabad and Delhi NCR. Send us your broker statements or documents and we will tell you exactly what you owe and how to file it correctly.
General information, current as of 6 November 2026, not advice for a specific case. Due dates and fees change with MCA and CBDT notifications. Check with us before acting on it.