HSN Code 7113: Product Classification, GST Rate & Business Filing Guide

If your business deals in gold jewellery, silver ornaments, platinum jewellery, or even jewellery parts like clasps and unfinished pieces, using the correct Harmonised System of Nomenclature (HSN) code matters. A wrong classification can create GST mismatches, invoice errors and notices during return filing. HSN Code 7113 is the key code used across India for most precious metal jewellery supplies.

What items are classified under HSN Code 7113?

HSN Code 7113 covers “articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal.” It falls under Chapter 71 of the GST tariff, which deals with natural or cultured pearls, precious stones, precious metals, jewellery and related products. Here is the detailed breakdown of 7113:

What GST rate applies to HSN Code 7113?

After the GST rate rationalisation approved in the 56th GST Council meeting, the GST treatment for HSN 7113 continues to remain under the 3% GST slab, effective 22 September 2025. That means the supply of jewellery falling under HSN 7113 attracts 3% GST in total, typically 1.5% CGST + 1.5% SGST for intra-state sales, or 3% IGST for inter-state sales. The rate broadly applies to finished jewellery made of precious metal as well as parts of such jewellery classified under this heading.

What are the eligibility rules for availing ITC under HSN 7113?

Here are the key conditions for claiming Input Tax Credit (ITC) under HSN Code 7113 in India:

• The buyer claiming ITC must be registered under GST. Unregistered jewellers, traders, or businesses cannot claim GST credit for purchases under HSN 7113.
• ITC can be claimed only when jewellery, gold inputs, or related materials are purchased for business use, such as manufacturing, resale, or job work. Personal purchases are not eligible.
• The taxpayer must have a proper GST invoice issued by the supplier showing GSTIN, HSN 7113, taxable value, and tax amount separately. Without a valid invoice, ITC can be denied.
• The buyer must actually receive the jewellery or raw material. ITC is not available merely on invoice booking if delivery has not taken place.
• The seller must upload the invoice in GST returns and pay the tax collected to the government. If the supplier defaults, the buyer’s ITC may get blocked.
• The purchase invoice should appear in the recipient’s GSTR-2B/auto-generated statement. Businesses usually reconcile this before claiming credit.
• The buyer must pay the supplier within 180 days from the invoice date. If payment is delayed beyond this, the ITC claimed may need to be reversed temporarily.
• If jewellery under HSN 7113 is used partly for exempt supply or personal consumption, proportionate ITC cannot be claimed.
• ITC must be claimed within the deadline prescribed under Section 16 of the CGST Act by 30 November following the end of the financial year or before filing the annual return, whichever is earlier.

What are the GST return filing requirements under HSN 7113?

Businesses must be aware of the following GST return forms:

• GSTR-1 is the main outward supply return for HSN 7113 sellers. It contains invoice-level details on jewellery sales, debit notes, credit notes, and interstate supplies. Monthly filing is usually required, while eligible businesses under the QRMP scheme can file quarterly.
• GSTR-3B is a summary return where taxpayers declare total taxable sales, input tax credit (ITC) and GST liability related to jewellery transactions under HSN 7113. It is compulsory even if there are no sales during the period.
• Businesses with turnover above the prescribed threshold must also file GSTR-9, the annual GST return, which summarises yearly turnover, tax paid and ITC claimed.
• Dealers opting for the QRMP Scheme can file GSTR-1 and GSTR-3B quarterly if annual turnover is up to ₹5 crore.

Conclusion

If your business deals in gold, silver or platinum jewellery, getting HSN 7113 right is only the first step. It is equally important to regularly review product masters in your billing software, match HSN codes across purchase and sales invoices, and keep supporting records such as stock registers and valuation details ready for scrutiny.

Using accounting software like TallyPrime can make this easier by keeping HSN-wise invoicing, inventory tracking and GST reporting aligned in one place, reducing manual errors during the filing season.