Imitation jewellery, also known as fashion jewellery, is a popular alternative to fine jewellery for its affordability and versatility. However, like any other product, it is subject to tax regulations that require its proper classification for accounting and invoicing purposes. This is where the Harmonized System of Nomenclature (HSN) code comes in. In this blog, we will discuss everything you need to know about the imitation jewellery HSN code.
What is HSN Code?
HSN code is a six-digit code used to classify goods in a systematic and standardized manner for taxation purposes. It was developed by the World Customs Organization (WCO) and adopted by several countries, including India, as part of their trade facilitation efforts. HSN code is used to determine the rate of GST (Goods and Services Tax) applicable to a product.
What is the HSN Code for Imitation Jewellery?
The HSN code for imitation jewellery is 7117. This code includes all kinds of jewellery made of base metal or precious metal that are plated with non-precious metal, or set with simulated pearls, stones, or diamonds. It also covers fashion accessories like hairpins, brooches, and similar items that are worn as ornaments.
How to Determine the GST Rate for Imitation Jewellery?
The GST rate for imitation jewellery varies depending on the HSN code and the material used. For instance, if the jewellery is made of base metal or alloy and has no precious stones or pearls, the GST rate is 3%. However, if the jewellery is made of precious metal or is studded with precious stones, the GST rate is higher at 5%.
It is important to note that GST rates are subject to change, and it is recommended to check with the GST authorities or consult a tax expert for the latest updates.
In conclusion
The imitation jewellery HSN code is 7117, and the GST rate for it varies depending on the material used and the presence of precious stones or pearls. It is crucial to correctly classify your products and comply with the tax regulations to avoid penalties or legal issues. If you are unsure about the HSN code or the GST rate for your products, it is best to seek professional guidance.
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Frequently Asked Questions (FAQs)
Q: What is the HSN code for imitation jewellery?
A: The HSN code for imitation jewellery is 7117.
Q: What does the 7117 HSN code include?
A: The 7117 HSN code includes all kinds of jewellery made of base metal or precious metal that are plated with non-precious metal, or set with simulated pearls, stones, or diamonds. It also covers fashion accessories like hairpins, brooches, and similar items that are worn as ornaments.
Q: How is the GST rate for imitation jewellery determined?
A: The GST rate for imitation jewellery is determined based on the material used and the presence of precious stones or pearls. For instance, if the jewellery is made of base metal or alloy and has no precious stones or pearls, the GST rate is 3%. However, if the jewellery is made of precious metal or is studded with precious stones, the GST rate is higher at 5%.
Q: Are there any exemptions or concessions for imitation jewellery under GST?
A: There are no exemptions or concessions for imitation jewellery under GST. However, small businesses with an annual turnover of less than Rs. 20 lakhs are exempt from registering for GST.
Q: Is it necessary to mention the HSN code for imitation jewellery in invoices?
A: Yes, it is necessary to mention the HSN code for imitation jewellery in invoices. This helps in proper classification and taxation of the product and avoids any confusion or errors.
Q: How can I find the correct HSN code for my imitation jewellery product?
A: You can find the correct HSN code for your imitation jewellery product by consulting the official HSN code list or by seeking professional guidance from a tax expert.
Q: Can the HSN code for imitation jewellery be changed?
A: Yes, the HSN code for imitation jewellery can be changed if there are any revisions or updates in the official HSN code list. However, it is recommended to consult a tax expert before making any changes to avoid any legal issues.
