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Selling old jewellery or bullion will attract 3% GST

So, if old jewellery worth Rs 1 lakh is sold, a GST of Rs 3,000 will be deducted

Press Trust of India  |  New Delhi 

gold, jewellery, diamond

Selling of old or bullion will attract a 3 per cent on the value realised, Secretary said on Wednesday.

But, if the is sold and new one bought through the proceeds, the 3 per cent paid will be deducted from the goods and services (GST) payable on buying new

“Supposing I am a jeweller. Somebody comes to me with old jewellery, it is as good as buying gold. You can later claim input credit,” he said at the Master Class.

Explaining further Adhia said a jeweller buying from someone will charge 3 per cent under reverse charge. So, if worth Rs 1 lakh is sold, a GST of Rs 3,000 will be deducted. If the proceeds from the 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.

First Published: Thu, July 13 2017. 09:30 IST