Silver Price Crashes Ahead of Dhanteras 2026: GST and Tax Rules on Buying and Selling Silver

“Silver price today” is one of the top searches in India this week. Silver has fallen sharply just before the festive buying season. Reports on 23 October 2026 put silver at roughly ₹1.96 lakh to ₹2.2 lakh per kg depending on the city and benchmark, far below its record of about ₹4.1 lakh per kg touched on 29 January 2026. That is a fall of more than 45% from the peak.

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If you are planning to buy silver this Dhanteras and Diwali, or sell old silver at today’s rates, here is how tax works.

Why silver prices are falling

• Worries about industrial demand and slower global growth
• Higher oil prices, which raise fears that interest rates will stay high for longer
• A weaker rupee has softened the fall only slightly in India

GST on buying silver

• 3% GST on the value of silver coins, bars and jewellery
• 5% GST on making charges for silver jewellery and articles
• Silver ETFs and silver mutual funds: no GST when you buy units

Tax when you sell silver

• Physical silver (coins, bars, jewellery): held for more than 24 months = long-term gain taxed at 12.5% without indexation. Held for 24 months or less = gain added to your income and taxed at your slab rate.
• Silver ETFs (listed): held for more than 12 months = 12.5% long-term gain. Otherwise taxed at slab rate.
• Silver fund of funds / mutual funds: held for more than 24 months = 12.5%. Otherwise taxed at slab rate.
• Silver futures: treated as business income and taxed at slab rates.

Cash and PAN rules to keep in mind

A jeweller cannot accept cash of ₹2 lakh or more for a single purchase, and you will usually need to share your PAN for bigger purchases. Always ask for a proper GST invoice. It proves your purchase cost and date, which you will need to work out capital gains when you sell later.

Tax rules can change. Please check with a tax professional before making big investment decisions.

Need help with capital gains, ITR filing or GST? PUCHO Business Consult can help you file correctly and on time.

For more details, contact: [email protected]

Source: Goodreturns, StartupTalky and Patna Press (23 October 2026); BasuNivesh; Zerodha Fund House. Image: Sunfl0wer812, Wikimedia Commons (CC BY-SA 4.0).