GST on Jewelry D2C in India — Complete Founder's Guide 2026 | ITD GrowthLabs

GST is one of the most misunderstood areas in D2C jewelry finance. Founders often assume "3% on gold, done" — missing the 5% on making charges, e-invoicing thresholds, HSN classification traps, input credit maximisation, and the export-vs-domestic split that materially shapes P&L.

This piece is the founder's GST guide for jewelry D2C in India — rates by category, e-invoicing rules, HSN codes, input credit strategy, cross-state selling, GCC + international export mechanics.

GST rates by jewelry category

Gold jewelry: 3% GST on gold value + 5% GST on making charges. Separately billed on invoice.

Silver jewelry: 3% GST on silver value + 5% GST on making charges. Same structure as gold.

Diamond jewelry (mined + lab-grown): 3% GST on diamond value + 5% GST on making charges. Setting metal (gold + silver) also 3%.

Coloured stones + gemstones: 3% GST on stone value + 5% GST on making charges. Same as diamond.

Fashion jewelry (brass + copper + non-precious): 3% GST for imitation jewelry classified under HSN 7117. 18% GST for costume jewelry with plastic + resin dominant components.

Watches with jewelry (jewelled + pearl): Composite classification — typically 18% if watch component dominant, 3% + 5% if jewelry component dominant. Requires HSN judgment call.

Loose stones (uncut + polished): 0.25% GST for rough diamonds. 3% for polished diamonds + coloured stones sold loose.

Display GST inclusive vs exclusive on your Shopify store based on India consumer expectation (typically inclusive) + international displays (typically exclusive).

HSN codes + classification traps

Common jewelry HSN codes + their pitfalls:

• 7113: Articles of jewelry of precious metal (gold, silver, platinum). 3% GST.
• 7114: Silverware + goldware other than jewelry. Same 3% but reporting different.
• 7115: Other articles of precious metal. 3%.
• 7116: Articles of pearl + precious stones. 3%.
• 7117: Imitation jewelry (base metal, plastic, brass, etc.). 3% GST typically.
• 7118: Coin (gold + silver bullion coins). Typically 3% but check current rate for investment-grade coins.

Common classification errors: Lab-grown diamond classified as imitation (7117) instead of jewelry article (7113) → buyer sees wrong GST. Coloured stone jewelry classified under 7117 → buyer complaint + refund. Get HSN validated by GST consultant during launch.

E-invoicing + threshold rules

E-invoicing mandatory: For businesses with turnover above Rs 5 Cr per year (2025-2026 threshold; check current). Below threshold, standard tax invoices sufficient.

Above Rs 5 Cr turnover: Every B2B + export invoice must be reported to Invoice Registration Portal (IRP) via e-invoicing before delivery. IRN (Invoice Reference Number) + QR code generated + printed on invoice. Non-compliance = invoice invalid + input credit disallowed.

B2C sales below Rs 50,000: No e-invoicing required + composition simplified. Above Rs 50,000 B2C, must issue tax invoice with buyer details.

Shopify integration: Multiple GST + e-invoicing apps available (ClearTax, Vyapar, TallyPrime integration). Auto-generate IRN + QR at checkout. Rs 3-15K / month based on volume.

Input credit + maximising ITC

Input Tax Credit (ITC) allows offsetting GST paid on business inputs against GST collected on sales. For jewelry D2C brands, meaningful ITC sources:

• Gold + silver + diamond + stones purchased from BIS-registered vendors (3% ITC).
• Making charges paid to karigars + workshop (5% ITC).
• Packaging + shipping materials (18% ITC).
• Marketing + advertising spend (18% ITC).
• Photography + video production + agency fees (18% ITC).
• Rent + utilities on business premises (18% ITC).
• Professional fees (CA, legal, consulting) (18% ITC).

Well-managed ITC reduces effective GST outflow by 40-60% for typical D2C jewelry brand. Requires proper invoicing + GSTIN capture from vendors + monthly GSTR-2B reconciliation.

Cross-state selling + inter-state GST

Intra-state (within same state): CGST + SGST split (1.5% + 1.5% = 3% for gold). Straightforward.

Inter-state (across states, e.g., Mumbai to Delhi): IGST at 3% (or 5% for making). Single tax to Centre + state distribution handled by GST Council.

Shipping address determines state: Buyer's shipping address (not billing) determines applicable GST classification. Shopify + Razorpay auto-calculate based on address.

E-way bill: Required for consignments above Rs 50,000. Auto-generated via GST portal or Shopify plugin. Truck + delivery agent + AWB must carry copy.

Composition scheme: Not available for jewelry sellers due to inter-state + high-value nature. Regular GST scheme mandatory.

GCC + international exports — GST implications

Exports (India to GCC / USA / UK / anywhere): Zero-rated for GST purposes. IGST at 0% on export invoice. Input credit fully refundable.

LUT (Letter of Undertaking): Required to export without paying IGST upfront + claim refund later. Apply once yearly via GST portal.

Refund process: Monthly refund claim via GSTR-1 + GSTR-3B + shipping bill matching. Typically 60-120 days processing time. Cashflow-heavy for high-export-volume brands.

IEC (Importer Exporter Code): Required for any international transaction. Apply via DGFT portal. Rs 500 fee + 15-30 day approval.

Duty drawback: Additional benefit for exporters — reclaim customs duty paid on imported inputs (e.g., diamonds imported from Antwerp) proportionate to export value. Rs 3-8% additional margin recovery for import-heavy brands.