No GST on sale of old jewellery by individuals
New Delhi: Government has clarified that the sale of old jewellery by an individual to a jeweller will not attract any GST as the sale is not for furthering any business.
In a statement, Finance Ministry said that the sale of old jewellery by an individual to a jeweller will not attract the provisions of GST and jeweller will not be liable to pay tax under reverse charge mechanism on such purchases.
The ministry, however, said the tax will apply if an unregistered business sells gold ornaments to registered supplier.
The clarification came in the wake of Revenue Secretary Hasmukh Adhia’s comments in which he had said that the 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 of Goods and Service Tax.