$GdBa_2Cu_3O_{7-y}$(Gd123) powders were synthesized by the solid-state reaction method using $Gd_2O_3$ (99.9% purity), $BaCO_3$ (99.75%) and CuO (99.9%) powders. The synthesized Gd123 powder and the Gd123 powder with $Gd_2O_3$ addition ($Gd_{1.5}Ba_2Cu_3O_{7-y}$(Gd1.5)) were used as raw powders for the fabrication of Gd123 bulk superconductors. The Gd123 and Gd1.5 bulk superconductors were fabricated by sintering or a top-seeded melt growth (TSMG) process. The superconducting transition temperature ($T_{c,onset}$) of the sintered Gd123 was 93 K and the transition width was as large as 20 K. The $T_{c,onset}$ of the TSMG processed Gd123 was 82 K and the transition width was also as large as 12 K. The critical current density ($J_c$) at 77 K and 0 T of the sintered Gd123 and TSMG processed Gd123 were as low as a few hundreds A/$cm^2$. The addition of 0.25 mole $Gd_2O_3$ and 1 wt.% $CeO_2$ to Gd123 enhanced the $T_c$, $J_c$ and magnetic flux density (H) of the TSMG processed Gd123 sample owing to the formation of the superconducting phase with high flux pinning capability. The $T_c$ of the TSMG processed Gd1.5 was 92 K and the transition width was 1 K. The $J_cs$ at 77 K (0 T and 2 T) were $3.2{ imes}10^4;A/cm^2$ and $2.5{ imes}10^4;A/cm^2$, respectively. The H at 77 K of the TSMG-processed Gd1.5 was 1.96 kG, which is 54% of the applied magnetic field (3.45 kG).