Artificial Jewellery HSN Code and GST Rate

If you are in the artificial jewellery business or planning to start one, understanding the HSN code and GST rate is crucial. These details are essential for smooth business operations and compliance with tax regulations. In this blog, we’ll break down the HSN code for artificial jewellery, the applicable GST rates, and why this information matters to your business. Let’s dive in!

What is the HSN Code for Artificial Jewellery?

HSN (Harmonized System of Nomenclature) codes are globally accepted codes used to classify goods for taxation purposes. For artificial jewellery, the HSN code is:

7117

This code covers all types of artificial or imitation jewellery, including:

Necklaces
Bracelets
Earrings
Bangles
Rings
Anklets

Using the correct HSN code ensures that your products are properly categorized and taxed.

GST Rate on Artificial Jewellery

Under the Goods and Services Tax (GST) system in India, artificial jewellery falls under a specific tax slab. As of now, the GST rate for artificial jewellery is:

This rate applies to all types of imitation jewellery, whether you sell it online, offline, or export it.

Why is the HSN Code and GST Rate Important?

1. Tax Compliance:

Using the correct HSN code ensures that you comply with GST regulations.
It helps avoid penalties for incorrect categorization.

2. Accurate Billing:

HSN codes and GST rates must be mentioned on invoices.
This creates transparency for both buyers and sellers.

3. Ease of Filing Returns:

Correct classification makes GST return filing seamless and error-free.

4. Global Trade:

HSN codes are internationally recognized, making it easier to trade artificial jewellery across borders.

How to Apply GST on Artificial Jewellery

Here’s how GST works for artificial jewellery sellers:

Input GST: If you purchase raw materials or finished jewellery, you pay GST on these items.
Output GST: When you sell your products, you collect GST from your customers.
GST Returns: You can claim input tax credits and file your GST returns periodically.

For example:

If you buy jewellery worth ₹10,000 with 3% GST, you pay ₹300 as input GST.
When you sell jewellery worth ₹15,000, you charge 3% GST, which is ₹450.
You can offset the input GST (₹300) against the output GST (₹450) and pay only ₹150 to the government.

Documents You Need for GST Registration

To register your artificial jewellery business under GST, you’ll need:

PAN card of the business owner.
Aadhaar card.
Business registration certificate.
Bank account details.
Proof of business address.

FAQs on Artificial Jewellery HSN Code and GST Rate

Q1: Is the GST rate on artificial jewellery fixed?

Yes, the GST rate for artificial jewellery is currently fixed at 3%. However, rates are subject to change based on government policies.

Q2: Do I need GST registration for my jewellery business?

Yes, if your annual turnover exceeds ₹20 lakh (₹10 lakh for northeastern states), GST registration is mandatory.

Q3: Can I claim input tax credit for artificial jewellery?

Yes, you can claim input tax credit for the GST paid on raw materials or finished products.

Conclusion

Understanding the HSN code and GST rate for artificial jewellery is essential for running a successful and compliant business. The HSN code 7117 and the GST rate of 3% ensure proper classification and taxation of your products. By staying informed, you can manage your taxes efficiently, avoid penalties, and grow your jewellery business with confidence.

If you’re just starting out or need assistance with GST filing, don’t hesitate to consult a tax expert. Here’s to making your artificial jewellery business a sparkling success!