No GST on sale of old gold jewellery, vehicles by individuals

A day after the government said that sale of old gold jewellery will attract 3 per cent Goods and Services Tax (GST) via the reverse charge mechanism, it clarified that sale of old gold jewellery as well as old vehicles by ‘individuals’ will not attract any GST. However, if an unregistered supplier of gold ornaments sells it to a registered supplier, GST will be applicable under the reverse charge mechanism.

The government in an official statement said, “even though the sale of old gold by an individual is for a consideration, it cannot be said to be in the course or furtherance of his business (as selling old gold jewellery is not the business of the said individual), and hence does not qualify to be a supply per se.”

Click here to read more…