GST will have to be paid on the difference between the purchase and sale price of old jewelery

Jewelers will have to pay GST (Goods and Services Tax) only for the profit they make on reselling old gold jewelry. Advance Decision Authority (AAR), Karnataka has given this arrangement. In fact, Bangalore-based Aadhya Gold Pvt Ltd had filed an application in the AAR seeking information that if the company buys old gold jewelry from a person and later there is no change in the form of that product at the time of selling, what will be the GST. The payment will be made on the difference between the purchase and sale price.

The Karnataka Bench of AAR, in its judgment, said that GST will have to be paid only on the difference between the sale and purchase price, as the applicant is not changing the appearance of the old jewelry and is only selling it after cleaning and polishing. Presently the jeweler charges GST equal to three percent of the gross sale price received from the buyer.

Comments are closed, but trackbacks and pingbacks are open.