Mumbai: The Finance Ministry has clarified that those who have old jewellery in whatever quantity and who want to sell them need not worry about paying Goods and Services Tax on the sale.
The ministry has said that such sales would not attract incidence of GST that taxes gold under a separate slab of 32 per cent. "Sale of old jewellery by an individual to a jeweller will not attract the provisions of Section 9 (4) of the CGST Act, 2017," Finance Ministry said in a tweet.
The Ministry added that, as a result, the jeweller will not be liable to pay any tax under reverse charge mechanism on such purchases.
However, it may be noted that if an unregistered supplier of gold ornaments sells it to registered supplier, the tax under RCM will apply, the ministry further clarified.
