Understand a jewellery quotation
A clear retail quotation generally explains the jewellery item, gold purity, the net weight of precious metal, the pricing basis and making charges. Other components such as gemstones, discounts and additional lawful charges should be described where relevant. The final payable tax depends on the nature of the supply and applicable law.
GST treatment of jewellery sales
In its sectoral FAQ, India’s Central Board of Indirect Taxes and Customs states that GST is 3% of the total transaction value of a gold jewellery sale, whether making charges are separately shown or not. This answer concerns sale of jewellery to the end consumer; it should not be mixed up with separate job-work arrangements.
Practical example
For a hypothetical jewellery transaction worth ₹30,000 including making charges, 3% GST on the full jewellery transaction value works out to ₹900, making ₹30,900 total. This is a calculation example, not a current gold-rate quotation or a substitute for an actual tax invoice.
Important distinction: job work
The same CBIC FAQ separately discusses gold provided as raw material to a job worker; GST treatment of job-work charges can differ. Ask a tax professional before applying a job-work rate to a finished jewellery retail invoice.
Useful invoice checklist
- Item description and quantity.
- Net precious metal weight and carat/fineness as applicable.
- Making charges and other disclosed components.
- Applicable GST amount and prescribed invoice particulars.
- Hallmarking charges and an invoice for the purchased article, as applicable.