GST for Jewellers in Kolkata’s Bowbazar: 3% on Gold, Making Charges, Karigar Job Work, Old Gold and Hallmarking
Gold, silver and jewellery are taxed at 3% GST, and when a jeweller sells a finished piece, the 3% applies on the full value including making charges. When a karigar does job work on gold supplied by a jeweller, the karigar charges GST on the job work charges, generally at 5% (diamond work at a lower rate). In an old gold exchange, GST is charged on the full value of the new jewellery, and the old gold bought from a customer does not attract GST. Bowbazar’s jewellers also have to manage hallmarking with HUID, cash transaction limits and detailed stock records, which are the first things checked in a GST or income tax search.
GST rates in the jewellery trade
| Item | GST |
|---|---|
| Gold, silver and platinum bars, coins and jewellery | 3% |
| Making charges on jewellery sold by the jeweller | Included in value, at 3% |
| Cut and polished diamonds | 0.25% |
| Job work by karigars on jewellery | Generally 5% on job work charges |
| Job work on diamonds | Lower rate under the job work entry |
| Repair of customer’s jewellery | 18% as a repair service (check the classification) |
Old gold exchange
When a customer exchanges old jewellery for new, many jewellers wrongly charge GST only on the difference. GST is due on the full transaction value of the new jewellery. The old gold is a purchase from an unregistered person, on which there is no GST. Record the old gold with weight, purity and the customer’s details.
Karigars and job work
Jewellers in Bowbazar send gold to karigars for making. Gold sent under a job work challan is not a supply, but it must return within one year. Karigars with turnover above ₹20 lakh must register and charge GST on their labour. Keep a gold movement register showing gold out, finished jewellery in and the wastage allowed.
Hallmarking and HUID
Hallmarking with a 6-digit HUID is compulsory for gold jewellery sold in hallmarking districts, which include Kolkata. Each piece must carry the BIS mark, purity and HUID. A jeweller must be registered with BIS. Keep the hallmarking centre’s invoices, which also support the stock record.
Cash, PAN and income tax points
- Cash receipts of ₹2 lakh or more from one person in a day, for one transaction or one event, are not allowed and attract a penalty equal to the amount.
- Take PAN for jewellery sales of ₹2 lakh or more.
- Daily stock records, with opening stock, purchases, sales and closing stock by weight and purity, are essential. Most jewellery searches start with a stock mismatch.
E-way bills
Jewellery and precious metals are exempt from e-way bills under the GST rules. Carry the invoice or delivery challan when goods move, and keep transit insurance documents.
FAQs
What is the GST rate on gold jewellery in Kolkata?
3% on the full value, including making charges, when sold by a jeweller.
Is GST charged on the difference in an old gold exchange?
No. GST is charged on the full value of the new jewellery.
Do karigars charge GST?
Registered karigars charge GST on job work charges, generally at 5%.
Is an e-way bill needed for jewellery?
No. Jewellery and precious metals are exempt from e-way bills.
TAXAJ handles GST, stock records, accounts and income tax for jewellers in Bowbazar and across Kolkata. See our GST return filing service or talk to our Kolkata team.
Last updated 11 November 2026. Sources: Notification 1/2017 and 11/2017-Central Tax (Rate) as amended; CGST Rules, rule 138(14) and its Annexure; BIS Hallmarking of Gold Jewellery and Gold Artefacts Order; Income-tax law on cash receipts (section 269ST equivalent) and PAN quoting. General information only.
