Reading a Jewellery Bill
A jewellery tax invoice is the strongest proof you can have for a piece you bought. Here's what each line means and which ones to copy into your register.
The example is an Indian GST invoice. Jewellery bills in other countries show the same core lines (weight, rate, making charges and tax), under their own tax names such as VAT or sales tax.
Tax invoice or estimate?
Many shops first hand over an estimate, a slip with weights and a total. An estimate is not proof of purchase. Ask for a proper GST tax invoice, which carries the jeweller's name and address, their GSTIN (15 characters), an invoice number and date, and the HSN code 7113 for jewellery.
Line by line
| Line | What it means |
|---|---|
| Description | What the piece is (chain, bangle…), usually with purity, e.g. 22K916, and the HUID. |
| Gross weight | The whole piece on the scale, stones and all. |
| Stone weight | Weight of the stones, beads or enamel that aren't gold. |
| Net weight | Gold weight only. This is the weight you pay the gold rate on. |
| Rate / gram | The shop's "rate of the day" for that purity. The 22K rate is lower than the 24K rate. |
| Gold value | Net weight × rate. |
| Making charges / VA / wastage | What the jeweller charges for the work. It can be per gram, a percentage of gold value, or a fixed amount. In South India it's often called wastage or value addition (VA). |
| Stone charges | The price of the stones, listed separately. Diamond bills often give carats and a certificate number. |
| Hallmarking charges | A small fee for each piece for BIS hallmarking. |
| GST | 3% of the taxable value for finished jewellery, shown as CGST 1.5% + SGST 1.5% (or IGST 3% if the jeweller is in another state). |
| Old gold / exchange | Credit for old jewellery you traded in, with its weight and the rate credited. |
| Total / amount paid | What you paid, and how: cash, card, UPI or bank transfer. |
A worked example
A 22K chain, net weight 10 g, at an illustrative rate of ₹9,000/g, making charges 12%, no stones:
| Gold value | 10 g × ₹9,000 = ₹90,000 |
| Making (12%) | ₹10,800 |
| Taxable value | ₹1,00,800 |
| GST @ 3% | ₹3,024 |
| Total | ₹1,03,824, or about ₹10,382 per gram of chain |
Check your own bill with the bill checker.
Two rules to know in India
- PAN above ₹2 lakh. Jewellers must record your PAN for purchases above ₹2 lakh, whatever the payment method.
- Cash limit. A business can't accept ₹2 lakh or more in cash for a single transaction. For larger purchases, pay by card, UPI or bank transfer. The bank record also backs up your bill.
Keeping the bill
- Keep the paper original somewhere safe and dry. Thermal-paper bills fade within a few years.
- Photograph it in Tijori, under Purchase & stones, with the camera inside the app.
- Copy the key lines into the register: jeweller, GSTIN, invoice number, date, net weight, rate, making, GST, total, and payment mode.
- For a set bought on one bill, record the bill once on the set instead of on every piece.
Tax rates and thresholds are summarised for general information and can change. Check the current rules or ask a qualified tax adviser.