Published On: Thu, Jul 13th, 2017

Selling Old Gold Jewellery Attracts No GST: Finance Ministry

There is no GST on exchange jewellery, said Finance Ministry on Thursday as it is not the business of an individual.

Releasing a statement the ministry added, “Even though the sale of old gold by an individual is for a consideration, it cannot be said to be in the course of furtherance of his business.”

In terms of technicality the old jewellery sale by an individual does not come under the provisions of Section 9 (4) of the Goods and Services Tax act.

Selling Old Gold Jewellery Attracts No GST- Finance Ministry

Under such circumstances the jeweller will be exempted from tax of such jewellery.

However, GST will be applicable if the unregistered supplier sells the jewellery to registered supplier. The receiver of the jewellery comes under the tax regime and not the supplier.

Under the GST act the gold jewellery attracts 3 percent tax.

The new statement from finance ministry comes as a relief to individuals who want to sell off old gold ornaments and buy new jewellery against it.

The earlier reading of GST argued sale of old jewellery would be taxable and through the reverse charge mechanism.

GST was rolled out on July 1 across most of the Indian states and on August 5 the GST Council will review it.

Meanwhile, Jammu and Kashmir to has come under the new tax regime lately after much debate of not joining.

GST Council has also given a 2-month relaxation to businesses for filing of the GST returns.

About the Author

- Paul Linus is an eminent online journalist who has been writing news, features and editorials on different websites from across the world for about a decade.

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