No GST on sale of old jewelry

12 October 2017

The sale of old jewellery by an individual to a jeweller will not attract provisions of section 9(4) of the CGST (Central GST) Act and a jeweller will not be liable to pay tax under reverse charge mechanism on such purchases, the finance ministry said on Thursday. 

However, if an unregistered supplier of gold ornaments sells it to registered supplier, the tax under the reverse charge mechanism will apply. 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, the ministry said in a clarification.

Source- Economic Times