Vat & gst

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2016 DEAR SIRS,

HOW IS THE ROLE OF SMALL JEWELLERS WHO ARE NOT REGISTERED IN ANY ACT LIKE VAT ???
HOW MUCH AMOUNT OF T.O. REQUIRED FOR JEWELLERS TO BE REGISTERED IN VAT & GST ???

THANKS IN ADVANCE

CA Suresh Jain

CA Suresh Jain (Expert)
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11 December 2016 Which State you doing the business ?

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2016 it is for gujarat state

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 For **Gujarat**—here’s a simple breakdown regarding VAT and GST registration for small jewellers:

### VAT Registration (Pre-GST era)

* **Threshold turnover for VAT registration** in Gujarat was generally **Rs. 5 Lakhs** per annum (varied slightly by category and notification).
* Jewellers with turnover below this limit were not required to register or pay VAT.
* If turnover exceeded Rs. 5 Lakhs, registration under Gujarat VAT Act was mandatory.

### GST Registration (Post-2017 rollout)

* Under GST, the threshold for mandatory registration in Gujarat (as in most states) is **Rs. 40 Lakhs** aggregate turnover for goods dealers.
* For jewellers, if turnover is **below Rs. 40 Lakhs**, registration is not mandatory.
* If turnover crosses Rs. 40 Lakhs in a financial year, GST registration is compulsory.
* Jewellers must charge **GST** on taxable supplies once registered.

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### Summary for Small Jewellers in Gujarat:

| Tax Regime | Threshold Turnover | Registration Required? |
| ---------------- | ------------------------ | ----------------------------- |
| VAT (Before GST) | Rs. 5 Lakhs (approx.) | Yes, if turnover exceeds this |
| GST (After 2017) | Rs. 40 Lakhs (for goods) | Yes, if turnover exceeds this |

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### Additional Notes:

* If not registered, jewellers cannot claim input tax credit.
* Even if below threshold, jewellers can opt for voluntary registration.
* GST replaced VAT since July 1, 2017, so currently GST rules apply.

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If you want, I can help you with how to register for GST or the applicable GST rates for jewellery in Gujarat!

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