How silver is priced in India
Silver in India is quoted in rupees per kilogram for 999 fine silver — the unit used by MCX futures and the IBJA benchmark — and per 10 grams or per gram at the shop counter. The figures at the top of this page are the international spot price converted to rupees, before Indian import duty, GST and dealer premiums, so prices in Indian markets are normally higher.
Import duty, GST and import curbs
Since 13 May 2026 imported silver — bars and silver doré, as well as gold — carries 15% customs duty: 10% basic customs duty plus a 5% Agriculture Infrastructure and Development Cess, up from 6% (5% + 1%). On 16 May 2026 the DGFT also moved silver bars to the "restricted" import list, so commercial imports now need a government authorisation.
On top of that, 3% GST applies to silver bars, coins and jewellery. When you buy a finished piece the 3% is charged on the whole bill, making charges included; job work billed separately (when you hand over your own silver) attracts 5%. The GST Council left these rates unchanged in its September 2025 overhaul.
How the Indian silver rate is set
MCX silver futures trade in rupees per kilogram, with a standard 30 kg contract plus Silver Mini (5 kg), Silver Micro (1 kg) and 100-gram contracts. The India Bullion and Jewellers Association (IBJA) publishes 999 silver benchmark rates twice each business day, at about 12:05 and 17:05 IST; they include import duty but exclude GST. Jewellers then set their own counter rate.
The "Indian market rate" box above is spot × 1.15 — the duty-paid value. Real prices can sit above it: with import licences slowing supply, Indian silver traded at a premium to the duty-paid price for much of 2026.
BIS hallmarking for silver
Silver hallmarking in India is voluntary, but since 1 September 2025 every piece that is hallmarked must follow the revised standard IS 2112:2025 and carry three marks: the BIS logo with the word SILVER, the purity grade and a six-digit HUID code. The recognised grades are 999, 990, 970, 958, 925, 835 and 800 (the old 900 grade was dropped). Enter the HUID in the BIS CARE app to see the article type, purity, hallmarking centre and jeweller. The government plans to make silver hallmarking compulsory in phases; until that is notified, unhallmarked silver can still be sold, so ask for a hallmarked piece.
How Indians buy silver
Silver is bought by the kilo as bars, as 10- and 20-gram coins (often stamped with Lakshmi and Ganesh) for Dhanteras and Diwali, and as everyday and religious items: payals (anklets) are the most commonly hallmarked silver article, followed by diyas, plates and idols. Since 1 April 2026 banks and NBFCs may lend against silver jewellery (up to 10 kg) and silver coins (up to 500 g), valued at IBJA or exchange prices; silver bars and silver ETFs are not accepted as collateral.
Tax and duty information last reviewed October 2026. Rules change — confirm with your dealer or tax authority before a large purchase.