New Delhi sources have stated that the Revenue Department had clarified that sale of old jewelry as well as old vehicles by individuals will not attract any GST as the sale is not for furthering any business. Meanwhile when clarifying on Revenue Secretary Hasmukh Adhia's comments yesterday stating that it was informed at GST that "purchase of old gold jewelry by a jeweler from a consumer will be subject to GST at the rate of 3% under reverse charge mechanism in terms of the provisions contained in Section 9(4) of the Central GST Act, 2017."
Meanwhile it then went on to state that the said section has to be read in conjunction with another section and "even though the sale of old gold by an individual is for a consideration, it cannot be said to be in the course or furtherance of his business (as selling old gold jewelry is not the business of the said individual), and hence does not qualify to be a supply per se."
Accordingly, the sale of old jewelry by an individual to a jeweler will
not attract the provisions of Section 9(4) and jeweler will not be liable to
pay tax under reverse charge mechanism (RCM) on such purchases.
