Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
BW Businessworld

Sale Of Old Jewels To Attract 3% GST

But, if the jewellery is sold and new one bought through the proceeds, the three per cent tax paid will be deducted from the Goods and Services Tax (GST) payable on buying new jewellery.

Photo Credit : Reuters

1478585107_HkUYFn_gold.jpg

Selling of old jewellery or bullion will attract a three per cent GST on the value realised, revenue secretary Hasmukh Adhia said on Wednesday (12 July).

But, if the jewellery is sold and new one bought through the proceeds, the three per cent tax paid will be deducted from the Goods and Services Tax (GST) payable on buying new jewellery.

“Supposing I am a jeweller. Somebody comes to me with old jewellery, it is as good as buying gold. You can later claim input tax credit,” he said at the GST Master Class.

Explaining further, Adhia said that a jeweller buying old jewellery from someone will charge three per cent GST under reverse charge. “So, if old jewellery worth Rs 1 lakh is sold, a GST of Rs 3,000 will be deducted. If the proceeds from the old jewellery is used for buying new jewellery, the tax paid on sale will be adjusted against GST on the purchase,” he said.

However, if an old jewellery is given to the jeweller for some modification, then it would be considered as job works and five per cent GST would be levied.

“But, if I am saying that take my old jewellery melt it and give me a new one, then it means that trader is a registered person and it is as good as buying gold in form of old jewellery,” he said.

Under the GST regime rolled out from July 1, tax is levied at three per cent on gold, while any form of job work attract five per cent levy.

When asked about the tax to be levied on downloading of movies and television shows on Netflix, Adhia said the US company is paying service tax, which will now be replaced by GST.

On advertisements given in website or blogs, Adhia said if the money is earned by way of providing services, then GST would be levied.

However, the ministry would soon clarify various provisions related to advertisements on websites after seeing stakeholder representation.

He said businesses and traders willing to avail the composition scheme will have to choose the option by logging into the GSTN portal by July 21. Whereas, for new registrations, they have to give their own choice at the time of filing up forms for registration.

(PTI)


Tags assigned to this article:
goods and services tax hasmukh adhia GSTN portal GST Rate
sentifi.com

Top themes and market attention on: