GST: The Karnataka bench of AAR said that GST will have to be paid to the jewelers only on the margin of sale price and purchase price.
Gold
Jewelers will have to pay Goods and Services Tax (GST) only for profits made on resale of second hand or used gold jewellery. Advance Decision Authority (AAR), Karnataka has given this arrangement. Aadya Gold Pvt Ltd of Bangalore. (Aadhya Gold Private Ltd) had filed an application in the AAR seeking information that if it buys old or second hand gold jewelery from any person and there is no change in the form or nature of that product at the time of sale, what will happen? GST will have to be paid on the difference between the purchase and sale price.
The Karnataka Bench of AAR concluded that GST would be payable only on the margin of sale price and purchase price, as the jewelery is not being melted down into bullion by the applicant and subsequently new jewelery is not being made. Rather the applicant is cleaning and polishing the old jewelery and is not making any changes in its appearance.
GST payable on resale of second hand jewelery will come down
Experts say that this decision will reduce the GST payable on resale of second hand jewellery. At present the industry charges GST equal to 3 per cent of the gross selling price received from the buyer. Rajat Mohan, Senior Partner, AMRG & Associates, said, “Most jewelers buy old jewelery from the general public or from unregistered dealers. This eliminates the need to credit the tax in the hands of jewellers.
Mohan said, the Karnataka AAR arrangement has given that GST will be payable only on the difference between the purchase price and the selling price. This will have a significant impact on the industry and reduce the cost of tax for the end consumer.
12% GST will be levied on the packet of chips
Now chips packets, salted cashew nuts and other snacks are going to be expensive. These will attract 12% GST. This decision has been taken by the Kerala Authority of Advance Ruling (AAR). According to the authority, this GST rule will also be applicable on unbranded chips and namkeen.
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