Jewellery GST Billing in India: Calculations, HSN Codes & Compliance
A complete walkthrough of jewellery GST arithmetic, 3% tax breakdown, making charge taxation, and mandatory invoice disclosures for retailers.
Complete Guide to Jewellery GST Billing in India
Navigating GST for precious metals requires strict adherence to statutory rules. Gold and silver jewellery do not follow the standard 5%, 12%, or 18% GST slabs. Instead, the GST Council established a specific 3% GST rate for articles of jewellery.
Below is an authoritative guide to calculating jewellery bills accurately and maintaining clean tax compliance.
Applicable HSN Codes for Jewellery
| Item Description | HSN Code | Applicable GST Rate |
|---|---|---|
| Articles of jewellery and parts thereof, of precious metal | 7113 | 3% (1.5% CGST + 1.5% SGST) |
| Articles of goldsmiths' or silversmiths' wares | 7114 | 3% (1.5% CGST + 1.5% SGST) |
| Worked pearls, diamonds, precious & semi-precious stones | 7116 | 3% (1.5% CGST + 1.5% SGST) |
| Imitation jewellery | 7117 | 3% |
| Job work charges (making charges billed independently by job worker) | 9988 | 5% |
*Crucial Rule:* When a retail jeweller sells a finished piece of gold jewellery and itemizes making charges on the same retail bill, the entire invoice value is treated as a composite supply of goods under HSN 7113 and taxed at 3%.
Step-by-Step Jewellery Bill Arithmetic
Here is a live worked example of how a 22-karat gold jewellery bill is calculated under GST:
Assumptions: - **Item:** 22K Gold Bangle - **Gross Weight:** 25.000 grams - **Stone / Enamel Weight:** 1.000 grams - **Net Gold Weight:** 24.000 grams - **Today's 22K Gold Rate:** ₹7,200 per gram - **Making Charges:** 10% of gold value
1. Calculation of Pure Gold Value: $$\text{Gold Value} = 24.000 \text{ g} \times ₹7,200/\text{g} = ₹1,72,800$$
2. Calculation of Making Charges: $$\text{Making Charges} = 10\% \text{ of } ₹1,72,800 = ₹17,280$$
3. Total Taxable Value: $$\text{Taxable Value} = ₹1,72,800 + ₹17,280 = ₹1,90,080$$
4. Calculation of GST (3% Total): - **CGST (1.5%):** ₹1,90,080 × 1.5% = ₹2,851.20 - **SGST (1.5%):** ₹1,90,080 × 1.5% = ₹2,851.20 - **Total GST (3%):** ₹5,702.40
5. Final Invoice Value: $$\text{Total Payable} = ₹1,90,080 + ₹5,702.40 = ₹1,95,782.40 \text{ (Rounded to ₹1,95,782)}$$
Mandatory Details on a Jewellery GST Invoice
To be valid under Indian tax law, every jewellery tax invoice must include: 1. Showroom trade name, registered address, and GSTIN. 2. Consecutive serial number unique for each financial year. 3. Date of issue. 4. Customer name, address, and state code (and customer GSTIN if B2B). 5. Customer PAN for cash transactions exceeding ₹2,00,000. 6. Detailed description of goods including gross weight, net metal weight, and purity/karat. 7. Correct HSN Code (7113). 8. Separate line items for Taxable Value, CGST, and SGST.
How Jexo Automates GST Compliance
With Jexo Jewellery Billing Software, counter staff do not calculate these percentages manually. Once weights and making charges are entered, Jexo automatically splits the CGST and SGST down to the exact paisa, applies statutory round-off, and files transaction logs ready for monthly GSTR-1 and GSTR-3B filings.
Put These Best Practices into Practice
Jexo is designed specifically to automate the compliance, purity, and billing workflows explained in this guide.
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