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Jewellery bill format: what it is
A tax invoice is the document a GST-registered seller issues to charge for goods or services; it fixes the taxable value and the CGST, SGST or IGST, and it is what the buyer claims input tax credit on. Weight, purity, rate per gram, making charges, HUID and 3% GST.
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Example: a filled invoice
- The title says what the document is: an invoice.
- A unique number from a continuous series, allocated when you issue it.
- Your name, address and GSTIN.
- Who it is for.
- Each line: description, HSN/SAC, quantity, rate and taxable value.
- GST split by component: CGST and SGST in the same state, IGST across states.
- The total in the document's currency and format.
Worked example: the numbers behind the invoice above
| Item | Qty | Rate | Taxable value | Tax |
|---|---|---|---|---|
| Gold necklace 22K (916), HUID XX00X0. Gross 24.600 g, beads 0.420 g, net 24.180 g, at ₹11,450 per gram (HSN 7113) | 24.18 | ₹11,450.00 | ₹2,76,861.00 | ₹8,305.83 |
| Making charges, ₹1,100 per gram of net weight | 24.18 | ₹1,100.00 | ₹26,598.00 | ₹797.94 |
| Hallmarking charges, 1 article | 1 | ₹45.00 | ₹45.00 | ₹1.35 |
| Taxable value | ₹3,03,504.00 | |||
| CGST 1.5% | ₹4,552.56 | |||
| SGST 1.5% | ₹4,552.56 | |||
| Total | ₹3,12,609.12 | |||
GST is worked out per line and split into CGST and SGST (same state) or IGST (other state) from the two GSTINs.
How to fill in the jewellery bill format
- Add the shop name, address, GSTIN and BIS registration number.
- Add the customer, and record their PAN for purchases above ₹2 lakh.
- For each piece, give the HUID, purity, gross and net weight and the rate per gram.
- Bill making and hallmarking charges on their own lines at 3% GST, then save.
Jewellery bill columns
| Column | What to enter |
|---|---|
| Description | Item, such as necklace or pair of bangles, with HUID |
| Purity | 22K (916), 18K (750) or 14K (585) |
| Gross weight | Total weight of the piece, in grams to 3 decimals |
| Stone weight | Weight of stones or other non-gold parts |
| Net weight | Gross minus stones: the gold you charge for |
| Rate per gram | The day's rate for that purity |
| Gold value | Net weight x rate |
| Making charges | Per gram, a percentage of gold value, or a flat amount |
| Stone charges | By carat or per piece, with the certificate number for diamonds |
| Hallmarking charges | Per article, shown separately |
| GST | 3%, as CGST 1.5% and SGST 1.5% within the state |
Worked example
A 22 carat necklace weighs 24.600 g gross with 0.420 g of beads, so 24.180 g net. At a sample rate of ₹11,450 a gram the gold is ₹2,76,861. Making charges at ₹1,100 a gram add ₹26,598 and hallmarking ₹45. On ₹3,03,504, GST at 3% is ₹9,105.12 (₹4,552.56 CGST and ₹4,552.56 SGST), for a total of ₹3,12,609.12.
What to put on an invoice, field by field
| Field | What to enter |
|---|---|
| Document title | Say exactly what it is: "Tax invoice". The title tells the buyer and the tax authority how to treat it. |
| Number and date | A unique number in a continuous series (at most 16 characters, unique for the financial year) and the issue date. LuckPanda allocates the number when you issue. |
| Your business | Name, address and GSTIN (state code is the first two digits) |
| Customer | Name, address and GSTIN if registered; for unregistered buyers, name, address and state |
| Lines | Description, quantity, unit and rate, with the HSN code for goods or SAC for services. Each line carries its own tax rate. |
| Tax | GST rate per line. Same state: CGST and SGST, half each. Another state or export: IGST. |
| Totals | Taxable value, tax by component and the total, in the document currency. Amounts in words are customary in India. |
| Terms | Due date, bank or payment details and late-payment terms. |
India GST rules for an invoice
- Contents are set by rule 46 of the CGST Rules: supplier name, address and GSTIN; a consecutive serial number of up to 16 characters, unique for the financial year; date; recipient details and GSTIN if registered; HSN or SAC; description, quantity, taxable value; rate and amount of CGST, SGST/UTGST or IGST; place of supply for inter-state supplies; a reverse-charge statement where it applies; and a signature.
- HSN digits: businesses with aggregate turnover up to ₹5 crore show 4 digits on B2B invoices; above ₹5 crore, 6 digits on every invoice.
- Timing: for goods, on or before removal or delivery; for services, within 30 days of supply.
- E-invoicing (an IRN from the Invoice Registration Portal) applies to B2B invoices of businesses whose aggregate turnover crossed ₹5 crore in any year since 2017-18.
- Unregistered or composition sellers do not issue tax invoices: they issue a bill of supply and charge no GST.
Mistakes to avoid
- Editing or deleting an issued invoice instead of issuing a credit note.
- Gaps or duplicates in the number series.
- Charging the wrong tax type (for India: IGST on an intra-state sale, or CGST and SGST across states).
- Leaving out the due date and payment details, which is the commonest reason invoices are paid late.
- Rounding each line's tax differently from the total; LuckPanda computes tax per line and keeps the components adding up.
Invoice vs other sales documents
| Document | When | Asks for payment | Tax document | In the books |
|---|---|---|---|---|
| Quotation / estimate | Before the order | No | No | No |
| Proforma invoice | After the order, before supply | Advance only | No | No |
| Invoice / tax invoice | On supply | Yes | Yes | Yes: sale and receivable |
| Receipt | When paid | No, confirms payment | No (receipt voucher for advances in India) | Yes: payment |
| Credit note | After an invoice, to reduce it | No, reduces what is owed | Yes | Yes: reverses part of the sale |
Questions people ask
What GST applies to gold jewellery?
3% on the full value of the jewellery, making charges included, when a jeweller sells it. Making charges are taxed at 5% only when a goldsmith does job work on gold the customer supplies. Check the current notifications before relying on these rates.
Why does the bill show gross and net weight?
Gross weight includes stones, beads and other non-gold parts. Gold is charged on net weight only, so both should appear, with stones listed and priced separately.
What must a hallmarked jewellery bill show?
BIS rules require the bill for hallmarked jewellery to show each article's description, net weight of precious metal, purity in carat and fineness, and the hallmarking charges. The six-character HUID on each piece is commonly printed on the bill as well.
How is old gold exchanged on a bill?
The value of old gold taken from the customer is usually deducted from the amount payable, while GST is charged on the full value of the new jewellery. There is no GST on old gold bought from an individual who is not registered. Confirm the treatment with your tax adviser.