GST invoice format for a handicraft seller or artisan
Handicraft sellers benefited directly from the September 2025 rate cut: carved wood articles, stone statues and inlay work, base-metal statuettes and bidriware, basketware, jute and cotton handbags, and hand-executed paintings are all in Schedule I at 5%. Clay idols, earthen lamps and deities of stone, marble or wood are exempt. A handicraft invoice should describe the material, craft technique, artisan or cluster, size and whether the piece is handmade, because the description is what places it in the 5% or the exempt entry.
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Hand-carved sheesham wood elephant statuette, 12 inch
4420
6 PCS
1,800.00
10,800.00
5%
Marble inlay coaster set of 6 (stone inlay work)
6802
10 SET
950.00
9,500.00
5%
Brass dhokra figurine (base metal statuette), 8 inch
8306
8 PCS
2,200.00
17,600.00
5%
Cane and bamboo basket, hand woven
4602
25 PCS
350.00
8,750.00
5%
Madhubani painting on handmade paper, executed by hand
9701
4 PCS
3,500.00
14,000.00
5%
Clay idol of Ganesha, 10 inch
6912
12 PCS
450.00
5,400.00
0%
Taxable value
₹66,050.00
GST (CGST + SGST, or IGST if inter-state)
₹3,032.50
Invoice total
₹69,082.50
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a handicraft seller invoice needs
Material and craft technique
Sheesham wood carving, marble inlay, Bidri metal work, dhokra brass casting and cane basketry fall under different headings. Naming material and technique on each line lets the buyer and an officer see why the item is at 5% or exempt.
Handmade declaration
Many entries refer to articles that are hand-executed or handcrafted. A line such as 'hand carved' or 'executed entirely by hand' supports the classification when similar machine-made goods carry a different rate.
Artisan, cluster or GI tag
Crafts such as Channapatna toys or Madhubani paintings carry geographical indication tags. Quoting the artisan card number, cluster or GI reference adds authenticity and helps exporters with buyer documentation.
Size and weight
Statues and artware are priced by size and weight. Showing dimensions or weight avoids disputes about the piece that was shipped, especially for exhibition and online orders.
Exempt religious items
Clay idols and deities of stone, marble or wood are exempt. Grouping them separately on the bill keeps exempt turnover visible.
Packing and courier charges
Fragile items need special packing and freight. These charges are part of the value of supply if billed by the seller and take the rate of the main item when they form a composite supply.
Standard GST invoice fields
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
✓Supplier name, address and GSTIN
✓Consecutive invoice number (max 16 characters, unique for the year)
Schedule I of Notification 9/2025-Central Tax (Rate) brings a wide group of craft goods to 5%: idols of wood, stone including marble and metal other than precious metal; statuettes and ornaments of wood and wood marquetry (4420); statues, statuettes and ornamental goods of stone (6802) and stone inlay work; base-metal statuettes, frames and Bidriware (8306); basketware and wickerwork (4601, 4602); cotton and jute handbags (4202 22 20 and 4202 22 30); handcrafted candles; tableware and kitchenware of clay and terracotta; and hand-executed paintings, original engravings and original sculptures of chapter 97. The PIB note on the rate cut describes these together as relief for the handicrafts sector.
Religious clay items are exempt
Notification 10/2025 exempts clay idols, earthen pots and clay lamps, and deities made of stone, marble or wood. A shop that sells both decorative statues and deities should describe the religious items specifically as deities or idols for worship. A decorative stone elephant is taxable at 5% while a stone deity is exempt, even when made by the same carver.
Registration relief for craft sellers at fairs
A handicraft artisan or seller who travels to exhibitions in other states can be a casual taxable person. The government has given relief from compulsory registration to casual taxable persons and inter-state suppliers of specified handicraft goods made by hand, within the turnover threshold, provided they obtain a PAN and generate e-way bills where required. Sellers should check the current notification before relying on it and keep the e-way bill for goods taken to the fair.
Job work on handicrafts
Notification 15/2025 places job work in relation to handicraft goods in the 5% job-work entry. A master craftsman who gives raw wood or brass to artisans and pays a making charge receives a 5% job-work service if the artisans are registered. The raw material and finished goods should move under delivery challans.
E-commerce sales
Handicraft sellers who list on e-commerce marketplaces must register, because selling through an operator who collects tax at source requires registration, subject to the specific relaxations notified for small intra-state sellers. Each order invoice should carry the same craft description as the listing.
Common billing mistakes
✕Billing all decorative items at 18% from an old rate list, when most handicraft entries moved to 5% in September 2025.
✕Charging tax on a stone or wooden deity for worship, which is exempt.
✕Describing a hand-carved article only as 'gift item', making it impossible to justify the 5% handicraft entry.
✕Ignoring e-way bills when taking stock to an exhibition in another state.
✕Charging separate packing at 18% when it is part of a composite supply of the handicraft.
Handicraft seller GST invoice: FAQ
What is the GST rate on handicrafts?
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Most handicraft goods, including wood and stone carvings, base-metal statuettes, basketware, jute and cotton handbags and hand paintings, are taxed at 5% under Schedule I of Notification 9/2025-Central Tax (Rate).
Are clay idols taxable?
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No. Clay idols, earthen pots and clay lamps are exempt under Notification 10/2025, as are deities of stone, marble or wood.
Does a handicraft artisan need GST registration?
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Not if turnover stays below the threshold and sales are within the state. Special relief exists for specified handicraft goods supplied inter-state or at fairs, but the seller must follow its conditions, including PAN and e-way bills.
What HSN code is used for wooden handicrafts?
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Wooden statuettes and ornaments fall under heading 4420. Tableware and kitchenware of wood are under 4419, and other articles of wood under 4421.
Is a hand painting taxed at 5%?
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Paintings executed entirely by hand, other than hand-decorated manufactured articles, fall under heading 9701 and are taxed at 5%.