In a major relief for jewellers, the Karnataka Authority for Advance Ruling (AAR) has held that in case of resale of second-hand gold jewellery, jewellers have to pay GST only on the profit earned from such sale.
The ruling was made in reference to the application filed by Aadhya Gold Pvt Ltd seeking clarity whether goods and services tax (GST) is to be paid only on the difference between the selling price and purchase price as stipulated under Rule 32(5) of CGST Rules, 2017, if the applicant purchases used or second-hand gold jewellery from individuals and there is no change in the form or the nature of goods at the time of sale.
The AAR noted that the GST is payable only on the margin between the sale price and the buying price, as the applicant was not changing the form of the jewellery to bullion and then to new jewellery, but was only cleaning and polishing it without changing its nature and form.
According to experts, the development would reduce the GST payable on resale of used jewellery.
"In case of applicant dealing in second hand goods and invoicing his supplies 'second-hand goods', the valuation of supply of second-hand gold jewellery which are purchased from individuals who are not registered under GST and there is no change in the form and nature of such goods, can be made as prescribed under sub-rule (5) of Rule 32 of the Central Goods and Service Tax Rules," it said.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Infosys Yet To Fully Resolve Issues of New Income Tax Portal; Claims 10 Lakh ITRs Filed So Far by Taxpayers
Moneylife Digital Team
16 July 2021
Infosys, which has been facing scathing criticism from taxpayers over the continuous glitches on the much-touted new income tax (I-T) portal ever since its launch on 7th June, is said to be still working on resolving all the...
Fake GST ITC of Over Rs35,000 crore in Just 8,000 Cases in FY2021; DGGI Books Offenders
14 July 2021
The big crackdown on fake GST input tax credit (ITC) filers launched by tax sleuths over the last couple of years has provided rich dividends with the CGST zones and the Directorate General of GST Intelligence (DGGI) booking about...
Startups, pharma companies face tax liability as CBDT notifies new set of goodwill rules
13 July 2021
In what can increase tax liability on companies that have undergone mergers and acquisitions in recent years, the Central Board of Direct Taxes (CBDT) has notified new set of rules on tax treatment of goodwill where depreciation...
Cairn Energy Allowed To Takeover Indian Assets in Paris To Recover Part of $ 1.2 Billion Arbitration Award
Moneylife Digital Team/IANS
08 July 2021
UK's Cairn Energy has secured an order from a French court to seize about 20 properties in Paris belonging to Indian government for recovering a portion of $1.2 billion from India against the backdrop of the arbitration victory...