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Making charges on jewellery under gst composition scheme

25 March 2019

I am starting new business of silver / gold ornaments next month. I have been allotted GST number under composition scheme. Under this scheme I can not charge any GST from customer. Can I charge making charges on jewellery from customer under this cheme?

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5 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 March 2019

Yes... You can.

1 Like

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pritesh (CA Final student) (7101 Points)
Replied 25 March 2019

No you cannot collect from customer and you CANNOT raise tax invoice

Sahil Jain (FAFD, DISA, CA) (Practicing Chartered Accountant ) (2476 Points)
Replied 25 March 2019

Yes you can include making charges in cost of jewellery itself and take it from the customer. In this case the entire amount will be treated as sales value and you wl have to pay composition rate of 1 %.
Also note that before 1st April, you cannot raise invoice only for making charges, as it will be service and you cannot raise invoice for services till 31st March.

Also from 1st April, you can raise invoice only for making charges and pay composition rate of 6 % for service provided.

Vinod Kumar Gupta (3 Points)
Replied 25 March 2019

thanks a lot.

Ruchita Agarwal (2 Points)
Replied 10 August 2021

Hi,

My client is already into making of jewellery ..his customer gives him gold ..he only receives making charges from customer .. he wants to register in GST in composition scheme ..

1. what will be the rate of GST on making charges in composition scheme?

2. maximum service charges recd which he can show is 50 Lac during the whole year ..