Looking for expert help with Income tax and GST for bangle and imitation jewellery shops India? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant. End-to-end filings, notices, and deadline tracking, all in one place.
Key Takeaways
- Glass bangles, lac bangles and plastic bangles are GST-exempt, and so are kumkum, bindi, sindur, alta and kajal (not kajal pencils) (Notification 10/2025-CT(R), S. No. 153, 154, 119 and 117).
- Imitation jewellery, which generally includes bangles of brass or other base metal, is 3%. Hair clips, combs and mehendi cones are 5%. Nail polish, lipstick and other make-up are 18% (Notification 9/2025-CT(R)).
- A shop selling only exempt items needs no GST registration at any turnover (Section 23(1)(a), CGST Act). Once you sell taxable items too, the bangle sales count towards the limit: Rs 20 lakh in Telangana.
- Composition taxes only your taxable sales for a trader, so exempt bangles carry no composition tax (Rule 7, CGST Rules).
- Don't take Rs 2 lakh or more in cash from one customer for one wedding (Section 269ST of the 1961 Act, now Section 186 of the 2025 Act). The penalty equals the cash received.
What is the GST rate on bangles? Glass bangles (HSN 7018), lac or shellac bangles (7117) and plastic bangles (3926) are exempt from GST under Notification 10/2025-Central Tax (Rate), S. No. 153, 154 and 119, from 22 September 2025. Bangles of gold or silver (7113) are 3%. Brass, copper or other base-metal bangles are generally billed as imitation jewellery (7117), also at 3%.
Walk through Laad Bazaar near Charminar in the wedding season and you'll see the problem every bangle shop has at the billing counter. One customer buys a dozen glass bangles, a lac kada set, a strip of bindis, a pair of oxidised earrings and a nail polish. That's five items and three different GST treatments in one bill. This guide sorts out the rates, tells you when the shop needs a GSTIN, compares composition with the regular scheme, and covers income tax for FY 2025-26 (AY 2026-27) under the Income-tax Act 1961, with the Income-tax Act 2025 section numbers that apply from 1 April 2026. It's written for bangle shops, fancy and fashion jewellery stores, online sellers and the CAs who file for them.
Bangles GST rate and HSN code: what is exempt and what is taxed
The exempt list is short and specific. If an item isn't on it, it's taxed.
Comparison
GST on Bangle Shop Items from 22 September 2025
| Item (HSN) | GST | Notification entry |
|---|---|---|
| Glass bangles, except those made from precious metals (7018) | Nil | 10/2025-CT(R), S. No. 153 |
| Bangles of lac or shellac (7117) | Nil | 10/2025-CT(R), S. No. 154 |
| Plastic bangles (3926) | Nil | 10/2025-CT(R), S. No. 119 |
| Kajal (not pencil sticks), kumkum, bindi, sindur, alta (3304) | Nil | 10/2025-CT(R), S. No. 117 |
| Imitation jewellery, other than lac bangles (7117) | 3% | 9/2025-CT(R), Schedule IV, S. No. 14 |
| Jewellery of gold or silver, including bangles (7113) | 3% | 9/2025-CT(R), Schedule IV, S. No. 10 |
| Combs, hair-slides, hairpins and the like (9615) | 5% | 9/2025-CT(R), Schedule I, S. No. 506 |
| Glass beads (7018) | 5% | 9/2025-CT(R), Schedule I, S. No. 408 |
| Mehendi paste in cones (1404 or 3305) | 5% | 9/2025-CT(R), Schedule I, S. No. 77 |
| Talcum powder and face powder (3304) | 5% | 9/2025-CT(R), Schedule I, S. No. 244 |
| Other make-up: nail polish, lipstick, face creams (3304) | 18% | 9/2025-CT(R), Schedule II, S. No. 61 |
Source: Notifications 9/2025 and 10/2025-Central Tax (Rate), both 17 September 2025, in force 22 September 2025. Notification 10/2025-Integrated Tax (Rate) repeats S. No. 117, 119, 153 and 154 for inter-State supplies.
Three things to watch:
- Metal bangles aren't on the nil list. The exemptions name glass, lac or shellac, and plastic. A brass, copper, oxidised or gold-plated bangle is generally billed as imitation jewellery (7117) at 3%. A gold or silver bangle is 3% under heading 7113.
- A bangle set sold with earrings is two items. If a bridal box has lac bangles (nil) and matching earrings (3%), show them as separate lines with their own values. One lump price on a mixed box invites a dispute about which rate applies.
- Kajal pencils aren't covered. The nil entry says "Kajal (other than kajal pencil sticks)". Keep kajal pencils as a separate item in your billing software.
If you also stock gold or silver, our GST on gold jewellery guide covers making charges, old gold exchange and e-way bill rules for Chapter 71 goods.
When does a bangle shop need GST registration?
What you sell decides this before how much you sell.
- Only exempt items. Section 23(1)(a) of the CGST Act says a person "engaged exclusively in the business of supplying goods... wholly exempt from tax" isn't liable to register. A shop that sells only glass, lac and plastic bangles with kumkum and bindi needs no GSTIN, even at Rs 50 lakh of sales.
- Exempt plus taxable items. Stock even a few imitation earrings or nail polishes and Section 23(1)(a) no longer applies. "Aggregate turnover" under Section 2(6) includes exempt supplies, so your bangle sales count towards the limit. Notification 10/2019-Central Tax raises the limit to Rs 40 lakh for goods-only suppliers, but Telangana is one of the States left out of it. A Hyderabad shop registers above Rs 20 lakh, the Section 22(1) figure.
- Sales to buyers in other States. Section 24(i) makes registration compulsory for an inter-State taxable supply, whatever the turnover. Handmade imitation jewellery has an exemption, covered below.
- Online marketplaces. Notification 34/2023-Central Tax (from 1 October 2023) lets you sell taxable goods on Meesho, Amazon or Flipkart without registering, if turnover in both the previous and the current year is within the Section 22(1) limit, you sell in only one State, make no inter-State supply, and get an enrolment number on the GST portal against your PAN before the first sale.
Example: a shop in the Old City sells Rs 14,00,000 of glass and lac bangles, Rs 9,00,000 of imitation jewellery and Rs 2,00,000 of cosmetics and hair clips in FY 2026-27. Aggregate turnover is Rs 25,00,000, including the exempt Rs 14 lakh. That's above Rs 20 lakh, so the shop must register. Without the jewellery and cosmetics counters, it wouldn't need to.
Our GST registration limit guide lists the States on the Rs 20 lakh limit. If you've crossed it, our GST registration service files the application.
Handmade imitation jewellery sent to other States
Notification 21/2018-Central Tax (Rate), whose table was replaced by Notification 13/2025-Central Tax (Rate) from 22 September 2025, lists "Handmade imitation jewellery (including natural seeds, beads jewellery, cardamom garland)" under 7117 as a handicraft at 3% (S. No. 27). The goods must meet its definition of "handicraft goods": predominantly made by hand, with ornamentation or similar work of a substantial nature, and clearly different from machine-made goods of similar use.
If your shop or workshop makes such pieces, two notifications help:
- Notification 3/2018-Integrated Tax exempts persons making inter-State taxable supplies of these handicraft goods from registration.
- Notification 56/2018-Central Tax does the same for casual sellers, such as a stall at a crafts exhibition in another State.
Both apply only while the all-India value of such supplies stays within the Section 22(1) limit. Both need a PAN and an e-way bill under Rule 138 of the CGST Rules, and for handicraft goods moved by an exempted person, the e-way bill is needed whatever the consignment value. Factory-made fashion jewellery bought from a wholesaler and resold doesn't qualify.
Composition or regular scheme?
For a manufacturer, composition taxes exempt sales too. For a trader it doesn't. Rule 7 of the CGST Rules, S. No. 3, puts "any other supplier" (which includes a retail shop) at 0.5% CGST plus 0.5% SGST of the "turnover of taxable supplies of goods and services in the State". Your glass and lac bangle sales are outside that base.
Take a shop with Rs 60,00,000 of yearly sales: Rs 35,00,000 of exempt bangles and kumkum, Rs 20,00,000 of imitation jewellery, Rs 3,00,000 of cosmetics and Rs 2,00,000 of hair accessories.
| Composition | Regular scheme | |
|---|---|---|
| Tax on Rs 35 lakh of exempt bangles | Nil | Nil |
| Tax on Rs 20 lakh imitation jewellery | 1% | 3% = Rs 60,000 |
| Tax on Rs 3 lakh cosmetics | 1% | 18% = Rs 54,000 |
| Tax on Rs 2 lakh hair accessories | 1% | 5% = Rs 10,000 |
| Total tax | 1% of Rs 25 lakh = Rs 25,000 | Rs 1,24,000 |
| Credit on purchases (Rs 15 lakh jewellery at 3%, Rs 2.4 lakh cosmetics at 18%, Rs 1.5 lakh accessories at 5%) | Not allowed | Rs 45,000 + Rs 43,200 + Rs 7,500 = Rs 95,700 |
| Net tax paid in cash | Rs 25,000 | Rs 28,300 |
The cash outflow is close in this example, but read it carefully: under composition the Rs 95,700 of GST on purchases becomes part of your cost and the Rs 25,000 comes out of your margin, while under the regular scheme the Rs 1,24,000 is collected from customers on top of your price. Under the regular scheme you also split the GST on shop rent and other common costs between exempt and taxable sales under Rule 42. So the choice usually turns on the conditions, not the rate:
Comparison
Composition vs Regular GST for a Bangle Shop
| Point | Composition (trader) | Regular scheme |
|---|---|---|
| Tax base | Taxable sales only (Rule 7, S. No. 3) | Each taxable sale at its own rate |
| Charge GST on the bill? | No, issue a bill of supply | Yes, tax invoice |
| Input tax credit | Not allowed | Allowed for taxable sales |
| Selling to other States | Not allowed (Section 10(2)(c)) | Allowed |
| Stall at an exhibition in another State | Not allowed (Section 10(2)(f)) | Allowed |
| Turnover limit (previous year) | Rs 1.5 crore aggregate, exempt sales included | No limit |
Source: CGST Act 2017, Sections 2(6), 10(1), 10(2)(c) and 10(2)(f); Rule 7, CGST Rules 2017; Notification 14/2019-Central Tax
Composition fits a shop that sells to walk-in customers in its own State. If you supply boutiques or resellers who want to claim credit, or you ship to other States, stay regular. Our composition scheme guide covers the other conditions, and our GST return filing service handles the monthly or quarterly returns either way.
Wedding orders and cash: the Rs 2 lakh rule
Bridal orders are where bangle shops get into trouble with income tax, not GST. Section 269ST of the Income-tax Act 1961 says no person shall receive Rs 2 lakh or more in cash:
- in aggregate from one person in a day,
- for a single transaction, or
- for transactions relating to one event or occasion from a person.
The third limb is the one that catches wedding sales. Say a bride's family buys lac bangle sets, kadas and jewellery across three visits for one wedding and pays Rs 2,40,000 in cash in total. Each visit was under Rs 2 lakh, but it's one occasion from one person. Section 271DA lets the tax officer levy a penalty equal to the amount received, Rs 2,40,000 here, unless you show good and sufficient reasons. For cash received on or after 1 April 2026, the same rule is Section 186 of the Income-tax Act 2025, with the penalty in Section 451.
Take wedding payments above that line by UPI, card or bank transfer. It also lowers your Section 44AD rate, as the next section shows. Our cash transaction limits guide covers the related loan and deposit rules.
Income tax: Section 44AD for bangle shops
If you're a resident individual, HUF or partnership firm (not an LLP), Section 44AD of the Income-tax Act 1961 lets you declare profit at a fixed rate for FY 2025-26 without detailed profit and loss accounts:
- Deemed profit: 6% of turnover received by bank transfer, UPI, cheque or other digital mode (by the return due date), and 8% of the rest. You can declare more.
- Turnover limit: Rs 2 crore, or Rs 3 crore if cash receipts are within 5% of turnover. Your exempt bangle sales count in turnover here. GST exemption doesn't change income tax.
- No separate depreciation. Section 44AD(2) treats deductions under Sections 30 to 38 as already allowed, so racks, display cases and the billing computer get no extra claim.
- Five-year lock: opt out after using 44AD and you can't come back for the next five years (Section 44AD(4)).
From 1 April 2026 (FY 2026-27 onwards) the same scheme is in Section 58 of the Income-tax Act 2025, with the same 6% / 8% rates and Rs 2 crore / Rs 3 crore limits.
Step-by-Step Guide
Working Out 44AD Profit for a Bangle Shop (Proprietor, FY 2025-26)
Split turnover by mode
Rs 60,00,000 total: Rs 42,00,000 by UPI, card and bank, Rs 18,00,000 in cash at the counter.
Check the limit
Cash is 30% of turnover, above 5%, so the limit is Rs 2 crore. Rs 60 lakh is within it.
Apply the rates
6% of Rs 42 lakh is Rs 2,52,000; 8% of Rs 18 lakh is Rs 1,44,000. Deemed profit: Rs 3,96,000.
Work out the tax
With no other income, Rs 3,96,000 is below the Rs 4 lakh nil slab of the new regime for FY 2025-26, so tax is nil even before the Section 87A rebate. Higher income up to Rs 12 lakh is also covered by the rebate.
Source: Income-tax Act 1961, Section 44AD; Income-tax Act 2025, Section 58
Every Rs 1 lakh you move from cash to UPI cuts deemed profit by Rs 2,000. If your real margin is lower than 6%, for example because of a lot of broken glass stock, you can keep full books and declare actual profit instead. Check the audit rules with your CA first. See our Section 44AD guide and the Section 87A rebate guide. Our ITR filing service prepares and files the return.
Common mistakes bangle shops make
- Charging GST on glass or lac bangles. They're exempt. Billing them at 3% means collecting tax that isn't due.
- Treating metal bangles as exempt. Only glass, lac or shellac, and plastic bangles are on the nil list. Brass and oxidised bangles are 3%.
- Registering when the shop sells only exempt goods. Under Section 23(1)(a) an all-exempt shop doesn't need a GSTIN.
- Leaving bangle sales out of aggregate turnover. Once you sell taxable items, the exempt sales count towards the Rs 20 lakh limit.
- Selling on Meesho to buyers in other States without registration. The 34/2023-CT enrolment route allows sales within your own State only.
- Taking Rs 2 lakh or more in cash for one wedding. The penalty equals the full amount received.
How Tax Garden helps bangle and jewellery shops
We first check whether your shop needs GST registration at all, given what's on your shelves. If it does, we file it through our GST registration service and set up your billing item master so glass bangles, lac sets, imitation jewellery, cosmetics and hair accessories each carry the right HSN and rate. We compare composition with the regular scheme on your real numbers, file your returns, and at year end prepare your ITR under Section 44AD. Call or WhatsApp us on 9640290977.
Related reading: GST for cosmetics shops, GST for gift shops, which also stock imitation jewellery, and GST for handloom saree shops in Telangana, often the shop next door.
