Scrap jewellery sales won't be affected by 3% GST levy

Jewellers say consumers can offset input credit on purchase of new jewellery against the old one

Sales of old gold jewellery are unlikely to be affected by the three per cent Goods and Services Tax (GST) levied on re-materialisation of used articles made of the precious metal.

Financial Services Secretary Hasmukh Adhia clarified on Wednesday that old gold jewellery would attract three per cent GST. However, jewellers say consumers needn't worry as they would get input credit in the invoice made for purchase of new jewellery against the old one. This means, three per cent of GST levied on the sale of old jewellery would be set off in the bill for new ornaments.