The Karnataka AAR has determined that jewelers only need to pay GST for the profits earned from reselling used gold jewelery.
The application to the Pre-Arbitration Agency (AAR) is submitted by Bangalore-based Aadhya Gold Private Ltd, and if you buy used / used gold jewelery, will GST pay only for the difference between the selling price and the buying price? I’m asking for clarification. It is from an individual and there is no change in the form / nature of the product at the time of sale.
AAR’s Carnataka Bench was cleaned and polished by the applicant rather than melting the jewelery into bare metal and then recreating it into new jewelery, so GST only had a margin between the selling price and the buying price. Observed to be paid Old jewelry without changing the shape of the purchased jewelry.
Experts said the ruling would reduce the GST for reselling used jewelery. Today, the industry typically charges GST at a 3% tax rate on the total sales received from buyers.
Rajat Mohan, senior partner at AMRG & Associates, said most jewelers will procure old jewelry from ordinary / unregistered dealers, eliminating the need for jewelers to deduct taxes.
“Karnataka AAR’s decision to charge GST based solely on the difference between the purchase price and the selling price will have a significant impact on the industry to reduce tax costs to end consumers,” Mohan added. ..
Read also: Lower fuel prices and streamline GST: Shashi Tharoor
Also read: Center releases 75,000 rupees to state / UT as under GST compensation
Jewelers pay GST only for profits from reselling used jewelery, AAR says
Source link Jewelers pay GST only for profits from reselling used jewelery, AAR says