No GST on sale of old jewellery, cars by individualsJuly 13, 2017 20:35
The revenue department today clarified that sale of old jewellery as well as old vehicles by individuals will not attract any GST as the sale is not for furthering any business.
Clarifying on Revenue Secretary Hasmukh Adhia's comments yesterday, the department issued a press statement saying it was informed at GST Master Class that "purchase of old gold jewellery by a jeweller from a consumer will be subject to GST at the rate of 3 per cent under reverse charge mechanism in terms of the provisions contained in Section 9(4) of the Central GST Act, 2017."
It then went on to state that the said section has to be read in conjunction with another section and "even though the sale of old gold by an individual is for a consideration, it cannot be said to be in the course or furtherance of his business (as selling old gold jewellery is not the business of the said individual), and hence does not qualify to be a supply per se."
"Accordingly, the sale of old jewellery by an individual to a jeweller will not attract the provisions of Section 9(4) and jeweller will not be liable to pay tax under reverse charge mechanism (RCM) on such purchases," it said.