Rates were reset in September 2025. GST rates were rationalised so that most goods and services now fall in two main slabs, 5% and 18%. Gold, silver, jewellery and precious stones continue to have their own special rates. Always confirm the rate for your exact HSN code.
Do you need to register?
Registration depends on your aggregate turnover across India under the same PAN, and on the kind of supplies you make.
- Turnover threshold: a business in Rajasthan supplying only goods generally needs registration once turnover crosses ₹40 lakh; for services (or goods and services together) the limit is ₹20 lakh.
- Compulsory registration, whatever the turnover: if you sell goods to buyers in other states, sell through e-commerce platforms (subject to limited relaxations), or exhibit and sell at fairs in another state as a casual taxable person.
- Exporters: you will need a GSTIN to file an LUT, claim refunds and match shipping bills.
- Small handicraft artisans: there is a specific exemption from registration for certain notified handicraft goods supplied inter-state by small suppliers, but they must still generate e-way bills. Check that your product is on the notified list.
- Composition scheme: not available if you make inter-state supplies, so it rarely suits exporters or dealers selling outside Rajasthan.
GST rates by category
| Category | GST rate | Notes |
|---|---|---|
| Gold, silver and platinum jewellery | 3% | On the full value including making charges, when the jeweller sells the jewellery |
| Gold and silver (bullion, bars, coins) | 3% | Check the HSN for coins and articles |
| Cut and polished diamonds | 0.25% | Special low rate; confirm against the current rate notification |
| Rough diamonds | Special low rate | Separate entry from cut diamonds; check the current rate |
| Coloured precious and semi-precious stones | Depends on HSN | The rate differs between rough (unworked) and cut or polished stones — check your exact entry |
| Job work on jewellery or diamonds | Concessional rate | Job work in relation to diamonds and to other jewellery have different notified rates; check the current rate |
| Handicrafts | Depends on HSN | Many handicraft items moved to the 5% slab in September 2025; some remain at 18% |
Job work: sending gold or stones to karigars
- A registered principal can send gold, stones or semi-finished goods to a job worker under a delivery challan without paying GST, as long as they come back within the time allowed (generally 1 year for inputs).
- Movements to and from job workers must be reported in the job work return (Form ITC-04).
- The job worker charges GST only on the job work charges, and the registered principal can claim that credit.
- Keep a metal and stone reconciliation: weight sent, weight received, agreed wastage. Unexplained shortages invite tax demands.
Exports: zero-rated, two routes
Exports are “zero-rated”: GST is not a cost to the exporter. There are two ways to achieve this:
- Under LUT, without paying IGST. File a Letter of Undertaking online for each financial year before the first export of that year, then claim a refund of the input tax credit that builds up.
- On payment of IGST. Pay IGST on the export invoice and get it refunded. The refund is processed automatically when the shipping bill data and your GST returns match.
Points that matter for Jaipur exporters:
- Match everything: invoice number, value and GSTIN must agree across the invoice, shipping bill and GSTR-1. Mismatches are the most common reason refunds get stuck.
- Supplies to SEZ units (for example in the Sitapura gems and jewellery zone) are also zero-rated, with their own documentation.
- Duty-free import schemes: if you import inputs duty-free under schemes such as Advance Authorisation, the IGST-paid route may be restricted. Check before choosing a route.
- Export proceeds must be received in foreign exchange within the period allowed under FEMA, or refunds and LUT benefits can be questioned.
- Export incentives such as duty drawback or RoDTEP are separate from GST; check eligibility for your products.
E-way bills and e-invoicing
- Jewellery and precious goods: precious stones, pearls, gold, silver and jewellery are on the list of goods for which an e-way bill is not required. You still need a proper invoice or delivery challan in transit.
- Handicrafts and other goods: an e-way bill is generally needed when the consignment value exceeds ₹50,000. For inter-state movement of handicraft goods by a person exempt from registration, it is needed whatever the value.
- E-invoicing: compulsory for B2B and export invoices if your aggregate turnover exceeded ₹5 crore in any financial year from 2017-18 onwards. Businesses with turnover of ₹10 crore or more must report each e-invoice to the invoice registration portal within 30 days of the invoice date.
Common input tax credit issues
- Credit follows your supplier’s filing. Generally, you can claim only what appears in your GSTR-2B. Follow up with suppliers who file late.
- Time limit: credit for a financial year must be claimed by 30 November of the next year, or the date you file the annual return, if earlier.
- Pay suppliers within 180 days of the invoice date, or reverse the credit until you pay.
- Inverted duty: with output tax at 3% or 0.25% and many inputs at 5% or 18%, credit piles up. The refund formula excludes input services and capital goods, so some credit may never come back. Factor this into pricing.
- Blocked credits: no credit on goods given as gifts (for example Diwali gifts of coins to customers or staff), personal expenses and most motor vehicles.
- Goods sent on approval (jangad): if the goods are not returned, an invoice must be issued when the buyer accepts them, and no later than 6 months from removal.
- Old gold exchange and purchases from the public: valuation and invoicing need care; get the treatment checked rather than following market practice.
Quick checklist for handicraft exporters
- Correct HSN codes on invoices and shipping bills — the rate and the refund both depend on them.
- LUT filed at the start of every financial year, before the first export.
- Monthly reconciliation of GSTR-1, GSTR-3B and shipping bills.
- A tracker for export proceeds received against each shipping bill.
- Udyam (MSME) registration and an Import Export Code updated every year.
- Records of every job worker — printers, dyers, finishers — with delivery challans.
Income tax still applies separately: GST registration does not change how your business profits are taxed, and large cash sales attract income-tax restrictions and KYC requirements.