GST on sale of Gold jewellery by housewife etc – Whether they are liable to pay GST on the sale of old gold jewellery?

by Paras Mehra 4.36K

Introduction

This article has been written to clear the entire rumours which are being spread to create chaos between the ordinary people. A message is being circulated in the social media that GST shall be liable to be paid when an individual sells his old jewellery to the jeweller under reverse charge because this shall be considered as supply.

However, against the truth, there is no validity in the message which is being circulated. In other words, neither the individual nor the jeweler is liable to pay the GST on the sale of old jewellery including gold ornaments, rings, chain etc.

 

How the rumour got the wings?

Actually, this topic was asked to the revenue secretary in one of the live session, where revenue secretary mistakenly answered that GST shall be liable to be paid under reverse charge on the sale of old jewellery. Hence, as soon as it is being answered by the expert, it goes viral on the media which resulted in unnecessary panic.

 

Clarification by the government

As soon as this news got viral and created an issue, the government has to come up with a clarification stated that there is no GST to be levied on this transaction of sale of old jewellery because the individual is not a regular dealer and hence, this transaction shall not be treated as supply.

There, no GST shall be levied on the sale of old jewellery by an individual to jewellery.

 

Conclusion

In case you have any query, kindly write to us at info@hubco.in.

 

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