ALSO READGST will not bring major hike in tax burden: Hasmukh Adhia GST coming July 1 despite calls for delay: Revenue Secretary Hasmukh Adhia GST not to affect gold jewellery market, demand to grow by 9% in FY17: Icra GST rollout: Gems & jewellery industry fully ready for July implementation Service tax to move up from 15% to 18% under GST, says Hasmukh Adhia
Explaining further Adhia said a jeweller buying old jewellery from someone will charge 3 per cent GST under reverse charge. So, if old jewellery worth Rs 1 lakh is sold, a GST of Rs 3,000 will be deducted. If the proceeds from the old jewellery is used for buying new jewellery, the tax paid on sale will be adjusted against GST on the purchase, he said.
However, if an old jewellery is given to the jeweller for some modification, then it would be considered as job works and 5 per cent GST would be levied.