The Revenue department today clarified that the sale of old jewellery as well as old vehicles by individuals will not attract any GST.
There has been a worry among individuals and jewelers that transactions on old gold jewellery and cars would attract 3 per cent GST under the Reverse Charge Mechanism.
However, Finance Minister Arun Jaitley on Thursday clarified the situation that GST would not apply in cases when individuals sell their old jewellery to goldsmiths.
The clarification means that jewelers will not be liable to pay GST under RCM when they purchase old gold from individuals.
Similarly, the government has clarified that GST will not be levied in cases of individuals selling their old cars.
However, if the person selling the old gold is an unregistered supplier of gold ornaments, then the GST of 3 per cent will apply, Jaitley further clarified.
However, in instances when a jeweler is given old ornaments in order to make modifications, a 5 per cent GST would be levied as this will be considered to be job works.