GST to be paid only on difference between Selling Price and Purchase Price of Second Hand Gold Jewellery purchased from individual: AAR [Read Order] Read More:
The Karnataka Authority of Advance Ruling (AAR) ruled that GST to be paid only on difference between selling price and purchase price of Second Hand gold jewellery purchased from individuals not registered under GST.
The applicant, Aadhya Gold Private Limited is dealing in second hand goods and invoicing his supplies as “second hand goods”, the valuation of supply of second hand gold jewellery which are purchased from individuals who are not registered under GST and there is no change in the form and nature of such goods, can be made as prescribed under sub-rule (5) of rule 32 of the Central Goods and Service Tax Rules.
The applicant has sought the advance ruling on the issue whether GST is to be paid only on the difference between the selling price and purchase price as stipulated under Rule 32(5) of CGST Rules, 2017, if applicant purchases used/second hand gold jewellery from individuals who are not dealers under the GST and at the time of sale there is no change in the form/nature of goods.
