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Sale of old jewellery by an individual customer to a jeweller will not attract GST
Monday, July 17, 2017 - 5:20:06 PM - By News Bureau
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Sale of old jewellery by an individual customer to a jeweller will not attract GST
NEW DELHI : The Finance Ministry, on 13 July 2017, has clarified that the sale of old jewellery by an individual customer to a jeweller will not attract 3 per cent GST.

Sale of old gold by an individual for a consideration cannot be termed to be in the course of 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 clarified.

Tanya Rastogi, Director, Lala Jugal Kishore Jewellers, which is among the leading players in North India, was quoted in media reports as having said that when a jeweller buys bullion through the proper channel he incurs 3 per cent GST and gets credit for it. However, when a jeweller buys old jewellery from customers he will not get any GST credit as there is no GST involved.

To that extent, she was quoted in media reports as having said, cash for old jewellery will become more expensive and this will encourage customers to exchange old jewellery for new ones.

media reports quoted Somasundaram PR, Managing Director, World Gold Council, as having said the new tax regime, if enforced strictly, can bring down smuggling with proper data analytics.

"With the rollout of GST," he was quoted in media reports as having said, "it is the right time for the government to bring down the import duty of 10 per cent on gold to discourage smuggling and work on a transparent mechanism for uniform gold prices across the country."
Sale of old jewellery
individual customer
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GST
Finance Ministry
clarified