The Ultimate Guide to GST Compliance for Indian Jewellers (2026)
Managing a retail jewellery showroom in India requires strict adherence to GST (Goods and Services Tax) regulations. From fluctuating gold rates to complex making charges, compliance can be daunting. Here is your definitive 2026 guide.
1. Understanding HSN Codes
The Harmonized System of Nomenclature (HSN) code for Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal is 7113. It is mandatory to mention this on all B2B and B2C invoices.
2. The 3% GST Rule
Gold, silver, and diamond jewellery attract a flat 3% GST. This applies to the total value of the item, including the gold value, stone value, and making charges. (CGST 1.5% + SGST 1.5% for intra-state sales).
3. Old Gold Exchange (URD Purchases)
When a customer brings old gold to exchange for new jewellery, the transaction is treated as a purchase from an Unregistered Dealer (URD). If the gold is melted and used for manufacturing, reverse charge mechanism (RCM) may apply depending on the specific state notifications. Usually, the GST is only paid on the net new value generated.
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