The benchmarks
Internationally, silver is priced in US dollars per troy ounce. The LBMA Silver Price, set daily at noon in London, is the main reference; COMEX futures in New York move the price during the day. In India, MCX silver futures and the rates published by bullion associations such as IBJA follow the international price plus Indian costs.
The calculation
- Price per kilogram in dollars = price per troy ounce × 32.1507.
- Price per kilogram in rupees = that × the dollar-rupee rate.
- Landed cost = that × 1.15, for the 15% customs duty from 13 May 2026.
- Retail rate = landed cost plus or minus the dealer’s premium; GST of 3% is added on the bill.
Worked example (illustrative numbers)
Round numbers close to the market in late October 2026; not today’s rate. The live rate is on our Silver Rate Today page.
| Step | Calculation | Result |
|---|---|---|
| International price | Assumed | $50 per troy ounce |
| Per kilogram in dollars | $50 × 32.1507 | $1,607.54 |
| Per kilogram in rupees | $1,607.54 × ₹95.00 | ₹1,52,716 |
| With 15% customs duty | ₹1,52,716 × 1.15 | ₹1,75,623 per kg |
| With 3% GST on purchase | ₹1,75,623 × 1.03 | ₹1,80,892 per kg |
Why rates differ by city
- Dealers add different premiums for transport, insurance, refining into small bars and coins, and local demand.
- Demand peaks around festivals and weddings raise local premiums for a time.
- Some quotes include GST and some do not.
Frequently asked questions
- How many grams is a troy ounce?
- 31.1035 grams. A kilogram is 32.1507 troy ounces.
- What customs duty applies to silver now?
- An effective 15% from 13 May 2026 (10% basic customs duty plus 5% AIDC), up from 6%.
- Is GST charged on silver?
- Yes, 3% on the purchase of silver bars, coins and articles.
- Is this page investment advice?
- No. It explains how prices, purity and taxes work, with sources. It does not recommend buying, selling or holding any product. See our Financial Disclaimer.
Sources
- LBMA: precious metal prices
- CBIC: customs tariff and notifications
- Xinhua: India hikes import duty on gold, silver (13 May 2026)
- MMTC-PAMP: gold and silver import duty raised from 6% to 15%
- CBIC: GST rates for goods
- IBJA: published gold and silver rates
- MCX: Multi Commodity Exchange of India
This guide explains rules and prices for general information. It is not investment, tax or legal advice. Duty and tax rules change; check the official source before you act. See our Financial Disclaimer and Corrections Policy.