GST on sale of old gold jewellery by individuals: If you hold jewellery and want to sell it to any gold shop, it won’t come under GST.
It’s been two weeks after the Goods and Services used cars was rolled out on the intervening night of June 30 -July 1.
Sale of old jewellery by an individual to a jeweller will not attract the provisions of Section 9(4) of the CGST Act, 2017.
Revenue Secretary Hasmukh Adhia had said that ‘purchase of old gold jewellery by a jeweller from a consumer will be subject to GST at the rate of 3 percent under reverse charge mechanism.’
The Ministry of Finance has since taken to Twitter to clarify some of the doubts over GST and its applicability.
referring to There will be no GST applicable if you are selling old jewellery since sale of old jewellery is not the business of the seller, said the finance ministry.
Transactions of selling of old jewellery will not be subject to GST since it is not the business of the seller.
Selling jewellery to traders or hostel accommodation provided to students by educational institutions will not be subject to GST, the ministry clarified.
With the overdose in hue and cry because of GST, here comes good news.
The transaction cannot be stated as taxable supply, but if an unregistered supplier of gold sells it to a registered supplier then he is liable to remit a GST of 3% under “reverse charge”.
referring to New Delhi: Individuals who want to sell their old jewellery or old vehicles will not have to pay GST as the sale is not for furthering any business, the Revenue department clarified on Thursday.
“However, if an unregistered supplier of gold ornaments sells it to registered supplier, the tax under RCM will apply,” it added.
It however said the tax would apply if an unregistered business sells gold ornaments to registered supplier.
Revenue department officials said the same principal will apply on sale of old cars or two-wheelers and no GST will be payable even though the supply would be for a consideration.
But since the sale is not in consideration for the furtherance of business no tax will apply.
collected by :Haily Jackson
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