Clean GST billing is one of the clearest signs of a serious supplier, and one of the first things established wholesalers ask about. This is a practical overview for trade buyers. Tax rules change, so always confirm the current rate and your own position with your chartered accountant.
The HSN code
Imitation jewellery falls under HSN heading 7117 ("Imitation jewellery"). Sub-codes separate items such as cufflinks and studs from other imitation jewellery made of base metal. Your invoice should show the HSN code for each line.
The GST rate
At the time of writing, imitation jewellery under HSN 7117 attracts 3% GST, the same rate as gold jewellery. Check the current notification before you file, as rates are revised from time to time.
How GST flows through the trade
- The manufacturer charges GST on its invoice to you.
- You claim input tax credit (ITC) on that GST, if you are registered and eligible.
- You charge GST when you sell to retailers or customers.
- You pay the difference to the government.
Within the same state, the invoice shows CGST and SGST; for inter-state supply, IGST.
What to check on every manufacturer's invoice
- Supplier's GSTIN, name and address
- Your GSTIN, name and address
- Invoice number and date
- HSN code for each item
- Quantity, rate and taxable value
- Correct tax split (CGST plus SGST, or IGST)
- Place of supply
If any of these are missing or wrong, your ITC can be at risk. Ask for a corrected invoice before you file.
Why buying without a bill is a false saving
Some sellers offer a lower "without bill" rate. For a registered wholesaler, that removes your input credit, creates mismatches in your books, and gives you no document if there is a dispute about quality or quantity. For established businesses, it is rarely worth it.
E-way bills
For goods moved above the threshold value, an e-way bill is needed. For inter-state consignments from Mumbai, the supplier or transporter generates it. Ask your manufacturer to confirm this is handled before dispatch.
Exports
Exports are generally zero-rated. Exporters either export under a Letter of Undertaking (LUT) without paying IGST, or pay IGST and claim a refund. Your manufacturer's GST invoice to you, the exporter, still matters for your records. See imitation jewellery export from India.
At Jagruti
Every order carries a GST invoice with HSN codes. Prices are Ex-Works Mumbai; transport is billed separately or arranged To-Pay. See how we supply wholesalers.
The official rate, and the "1.5%" confusion
The current GST rate schedule, CBIC Notification 9/2025-Central Tax (Rate), effective from 22 September 2025, lists heading 7117 "Imitation jewellery [other than bangles of lac/shellac]" in the schedule for 1.5% central tax. State tax adds the same 1.5%, so the total is 3% GST: 1.5% CGST plus 1.5% SGST within a state, or 3% IGST between states. Some websites quote "1.5%" because they show only the central half. Lac and shellac bangles are treated separately.
Composition scheme for small shops
Small retailers can opt for the GST composition scheme if their annual turnover is within the limit, currently Rs 1.5 crore for most states. Under it, a trader pays a flat 1% of turnover as tax, but:
- cannot charge GST on their invoices
- cannot claim input tax credit on purchases
- cannot make inter-state sales of goods
For a shop selling mainly to local customers, composition can simplify accounts. For a wholesaler or distributor selling across state lines and buying on GST invoices, the regular scheme is usually the only practical choice.
Input tax credit in practice
Suppose a distributor buys Rs 1,00,000 of jewellery from a manufacturer in another state, paying 3% IGST of Rs 3,000, and sells it to retailers for Rs 1,30,000 plus 3% GST of Rs 3,900. The distributor pays only the difference, Rs 900, to the government, because the Rs 3,000 already paid is claimed as credit. That credit exists only if the supplier's invoice is proper and the supplier files their returns, which is why buying with a correct GST bill protects your margin.
GST on job work and samples
Some wholesalers supply their own metal or designs and pay a factory only for labour (job work). Job work has its own GST treatment, different from buying finished goods, so agree with your accountant how it will be invoiced before you start. Samples sent for approval are also supplies for GST purposes when they are sold, so paid samples should carry a proper invoice like any other sale.