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3 percent GST for old jewel exchange
Posted on: 13/Jul/2017 2:43:18 PM
In a recent statement, the revenue secretary Hasmukh Adhia has said that old jewel or bullion sale will attract 3 percent GST out of the total value.
However, if the jewel is sold and new ones are purchased with the amount received, the 3 percent GST will be applicable for the newly purchased jewelry.
For instance, if I’m a jeweler and someone comes for exchanging old jewel worth enough to buy a new gold jewel, you can claim the input tax credit later, said GST Master Class.
Articulating about this, a jeweler who buys gold jewel from someone will have to pay 3 percent GST under the reverse charge. When the old jewelry of Rs 1 lakh is sold, for instance, the GST will be Rs 3000. When the amount is used for purchasing new jewel, the tax amount will be adjusted with the GST towards new purchase.
If in case the old jewelry is given for any kind of alteration, it will be considered as a job work and GST of 5 percent will be imposed. In cases where the old jewelry is given for melting and designing a new one, it will be done with a registered trader and will be equivalent to buying old jewelry.
