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Agri, textiles and crafts

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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Sample handicraft seller invoice

DescriptionHSN/SACQtyRate (₹)Taxable (₹)GST
Hand-carved sheesham wood elephant statuette, 12 inch44206 PCS1,800.0010,800.005%
Marble inlay coaster set of 6 (stone inlay work)680210 SET950.009,500.005%
Brass dhokra figurine (base metal statuette), 8 inch83068 PCS2,200.0017,600.005%
Cane and bamboo basket, hand woven460225 PCS350.008,750.005%
Madhubani painting on handmade paper, executed by hand97014 PCS3,500.0014,000.005%
Clay idol of Ganesha, 10 inch691212 PCS450.005,400.000%
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)
  • Date of issue
  • Customer name, address and GSTIN (if registered)
  • Place of supply with state name
  • HSN/SAC code per item
  • Description, quantity and unit
  • Taxable value after discounts
  • GST rate and CGST + SGST or IGST amounts
  • Signature or digital signature

Read more: GST Invoice Format: How to Lay Out a Compliant Tax Invoice · E-Way Bill Limit and Rules: When You Need One and When You Don't · What Is an HSN Code and Why Does Every GST Invoice Need One?

GST rules that matter for a handicraft seller

The 5% handicraft entries

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?

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?

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?

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?

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%?

Paintings executed entirely by hand, other than hand-decorated manufactured articles, fall under heading 9701 and are taxed at 5%.

Sources: Gazette of India: Notification 9/2025-Central Tax (Rate), goods rate schedules · Gazette of India: Notification 10/2025-Central Tax (Rate), exempt goods · Gazette of India: Notification 15/2025-Central Tax (Rate), services rates · PIB: Simplified GST for growth of Indian commerce and trade (Sept 2025)

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