Bengaluru · Family-run and mid-size jewellers
Bengaluru jewellers: PMLA Reporting Entity registration, 269ST cash rules, BIS hallmarking — under one engagement.
A Bengaluru jewellery showroom on Commercial Street or in Chickpet may operate in a city with strong card and UPI adoption — and still carry material PMLA, 269ST and BIS exposure from the cash it does accept. We cover all four compliance tracks from one engagement, fully digitally.
Bengaluru jewellery market
Where Bengaluru's jewellery trade operates
Bengaluru’s jewellery trade clusters around Chickpet, Commercial Street, Jayanagar and Gandhinagar, with branded showrooms across Indiranagar, Koramangala and Whitefield. Wedding-season demand in this city includes high-value diamond and platinum purchases alongside traditional gold — broadening the compliance surface beyond a pure-gold playbook.
HRA is based in Visakhapatnam and serves Bengaluru clients fully digitally. Onboarding, document collection and monthly compliance are WhatsApp-first. For diamond and stone-intensive businesses, ITC documentation and imported-stone reconciliation are handled as part of the GST track.
Karnataka SGST jurisdiction
GST for Karnataka-registered jewellers is administered by the Karnataka State GST officer. ITC on imported stones, making-charge job-work and Rule 32(5) old-gold margin positions are active scrutiny areas.
Bengaluru BIS hallmarking centre
A NABL-accredited Assaying and Hallmarking Centre operates in Bengaluru. Old-hallmark stock without the six-digit HUID must be re-hallmarked here before sale in this mandatory district.
Digital CA engagement — no local office required
HRA serves Bengaluru clients without a physical office in the city. Onboarding is document-first and WhatsApp-based. All PMLA, GST and BIS controls are maintained digitally. Site visits for stock audits are arranged on a per-need basis.
The compliance framework
Four tracks, each with its own regulator.
A Bengaluru jeweller's compliance exposure spans income-tax, PMLA, BIS product-control and Karnataka GST simultaneously. Each track answers to a different authority on its own timeline.
PMLA Reporting Entity
Bengaluru jewellers doing meaningful cash volumes are within the PMLA framework under S.O. 4713(E) dated 28 December 2020. The gateway is the cash transaction threshold — not business size, registration status, or whether FIU-IND has sent a notice.
FIU-IND registration · Principal Officer · CTR ₹10L · STR
s.269ST cash discipline
Three independent limbs — one person one day, one transaction, one event or occasion — each tested separately. A Bengaluru showroom accepting ₹2L or more from one payer across any single limb is exposed to a 100% penalty under s.271DA.
₹2L aggregate threshold · 100% penalty exposure · wedding-occasion limb
BIS hallmarking + HUID
Bengaluru is a mandatory hallmarking district. All articles offered for sale must carry a six-digit HUID from 1 April 2023. Old-hallmark stock without HUID cannot be sold as a new retail article without re-hallmarking at a BIS-registered Assaying and Hallmarking Centre.
Six-digit HUID · G.S.R. 415(E)/427(E)/634(E) · registered-jeweller controls
GST — Karnataka SGST
Gold attracts 3% GST; making charges 5%. Karnataka SGST officers have scrutinised ITC claims on imported stones and making-charge job-work. The Rule 32(5) margin method for old-gold purchases requires careful documentation to survive audit.
3% retail · 5% job work · Rule 32(5) margin · Karnataka SGST officer jurisdiction
The Bengaluru reality
What the local picture looks like.
Cash exposure in a digital city
A Bengaluru showroom that receives most payments by card and UPI may still cross the PMLA ₹10 lakh threshold in wedding months from the cash it does accept. The aggregation rule does not care about the percentage of cash to total turnover — it tests the absolute cash quantum from each customer.
PML Rule 3(1)(A)Diamond and stone ITC reconciliation
Bengaluru showrooms sourcing imported diamonds and coloured stones carry an ITC chain that Karnataka SGST officers examine. Where stones are used in manufacturing new jewellery, the ITC apportionment and documentation standards differ from a gold-only showroom.
CBIC GST rates — goodsOld-hallmark stock across multiple locations
A multi-branch Bengaluru operation with pre-April 2023 stock in Chickpet, Jayanagar and Koramangala needs a location-by-location HUID audit. Unsaleable old-hallmark stock sitting in a mandatory-district showroom is a live regulatory risk, not a balance-sheet footnote.
BIS Mandatory Hallmarking OrdersWedding-occasion limb across dates and locations
A Bengaluru family buying ₹12L of gold jewellery across three visits and two showrooms for their daughter's wedding is one event or occasion under section 269ST(c). The occasion limb aggregates all related purchases from one person regardless of the number of invoices, dates or counters.
Income-tax Act, section 269ST(c)Our engagement
Six tracks, one recurring rhythm.
Full-track detail at /services/jeweller-compliance. Here is what the engagement covers for a Bengaluru showroom.
Monthly PMLA reporting rhythm
Principal Officer governance, customer-risk review, connected-transaction aggregation, CTR preparation and documented STR decisions — filed by the 15th of the succeeding month via FIU-IND FINnet 2.0.
Monthly + event-driven
269ST daily cash-control
One-buyer-one-day dashboard testing all three limbs. Exception log captures split invoices, event-linked receipts and cash procurement under s.40A(3).
Daily
GSTR-1 / GSTR-3B reconciliation
Retail invoices, job-work credits, old-gold margin cases, imported-stone ITC and supplier credit reconciled to books before filing under Karnataka SGST jurisdiction.
Monthly
BIS quarterly audit
HUID movement review, old-stock mapping, transition-period compliance check and registered-jeweller obligations under the applicable Quality Control Order.
Quarterly
Stock and books reconciliation
Physical weight, purity, making-stage stock, imported stones and branch transfers tied to books. HUID movement maintained as a management control.
Quarterly
Tax audit and annual certificate
Section 44AB reporting supported by year-end physical verification, valuation-method review, gross-margin analysis and documented stock reconciliation.
Annual
Questions from Bengaluru showrooms
Statute-cited answers.
Is my Bengaluru showroom covered under PMLA — we don't deal in cash the way smaller towns do?
S.O. 4713(E) dated 28 December 2020 sets the threshold at ₹10 lakh or more in cash — whether in one operation or in several linked operations within a month. A Bengaluru showroom with significant wedding-season volumes can cross this threshold even if average daily cash receipts are modest. The PMLA framework applies to the character and quantum of cash — not to the city's overall payment mix or the showroom's perception of itself as a non-cash business.
Our accountant handles GST and ITR. Is that not enough for full compliance?
GST and income-tax filing covers two of four tracks. PMLA Reporting Entity registration and monthly CTR/STR obligations are separate obligations to FIU-IND — not CBDT, not CBIC. BIS HUID compliance is a product-control obligation to the Bureau of Indian Standards. A CA handling GSTR-1 and ITR is not, by default, monitoring your connected-cash aggregation or your old-stock HUID position. These require specific controls and a different cadence.
Can I sell old hallmark stock in Bengaluru without HUID?
No. Bengaluru is a mandatory hallmarking district. Old-hallmarked jewellery — jewellery bearing the old triangular BIS mark but without the six-digit HUID — cannot be sold as a new retail article in a mandatory district without being re-hallmarked at a BIS-registered Assaying and Hallmarking Centre. The transition period BIS provided for old-hallmark stock has closed for most categories. The specific Quality Control Order applicable to the article type must be checked.
We source imported diamonds and coloured stones. Does that change our GST position?
Imported precious stones and diamonds attract customs duty and, on the domestic supply side, GST. ITC claims on stones used in making jewellery require reconciliation to output supply. Karnataka SGST auditors have examined whether ITC on imported stones is correctly apportioned where part of the jewellery is exempt or compositionally different. The making-charge rate (5%) applies to job-work services; the 3% rate applies to the jewellery itself. Documentation of job-work bills, stone certificates and the ITC chain should be maintained precisely.
What is the CTR threshold — is it per transaction or per month?
Per customer, per period — not per invoice. Rule 3(1)(A) of the Prevention of Money-laundering (Maintenance of Records) Rules requires a Cash Transaction Report for cash transactions of ₹10 lakh or more — whether in a single operation or in several linked operations within a month whose aggregate crosses ₹10 lakh. A series of individually smaller cash receipts from the same customer, family, or related parties that appear integrally connected must be aggregated. The CTR is then filed by the 15th of the succeeding month.
Book a diagnostic
Start with a 30-minute compliance diagnostic.
We map your current exposure across PMLA, 269ST, BIS and Karnataka GST before proposing any engagement. No retainer until you have a clear picture of what is open.
Book a diagnostic