{"id":91066,"date":"2026-11-13T17:30:00","date_gmt":"2026-11-13T12:00:00","guid":{"rendered":"https:\/\/www.taxaj.com/learn\/?p=91066"},"modified":"2026-11-13T17:30:00","modified_gmt":"2026-11-13T12:00:00","slug":"gst-jewellers-bowbazar-kolkata-gold-making-charges","status":"publish","type":"post","link":"https:\/\/www.taxaj.com/learn\/gst-jewellers-bowbazar-kolkata-gold-making-charges\/","title":{"rendered":"GST for Jewellers in Kolkata’s Bowbazar: 3% on Gold, Making Charges, Karigar Job Work, Old Gold and Hallmarking"},"content":{"rendered":"

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.<\/strong> 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.<\/p>\n

GST rates in the jewellery trade<\/h2>\n
\n\n\n\n\n\n\n\n\n\n\n
Item<\/th>\nGST<\/th>\n<\/tr>\n<\/thead>\n
Gold, silver and platinum bars, coins and jewellery<\/td>\n3%<\/td>\n<\/tr>\n
Making charges on jewellery sold by the jeweller<\/td>\nIncluded in value, at 3%<\/td>\n<\/tr>\n
Cut and polished diamonds<\/td>\n0.25%<\/td>\n<\/tr>\n
Job work by karigars on jewellery<\/td>\nGenerally 5% on job work charges<\/td>\n<\/tr>\n
Job work on diamonds<\/td>\nLower rate under the job work entry<\/td>\n<\/tr>\n
Repair of customer’s jewellery<\/td>\n18% as a repair service (check the classification)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n

Old gold exchange<\/h2>\n

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.<\/p>\n

Karigars and job work<\/h2>\n

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 \u20b920 lakh must register and charge GST on their labour. Keep a gold movement register showing gold out, finished jewellery in and the wastage allowed.<\/p>\n

Hallmarking and HUID<\/h2>\n

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.<\/p>\n

Cash, PAN and income tax points<\/h2>\n