Selling old jewellery? No GST applicable
There will be no GST on selling old jewellery and used cars by individuals.
With the overdose in hue and cry because of GST, here comes good news. There will be no GST applicable if you are selling old jewellery since sale of old jewellery is not the business of the seller, said the finance ministry.
Transactions of selling of old jewellery will not be subject to GST since it is not the business of the seller. Selling jewellery to traders or hostel accommodation provided to students by educational institutions will not be subject to GST, the ministry clarified. The transaction cannot be stated as taxable supply, but if an unregistered supplier of gold sells it to a registered supplier then he is liable to remit a GST of 3% under “reverse charge”. The ministry also said that hostel accommodation provided to students, staff and faculty are also not taxable. There is no tax liability related to education. The same applies to sale of used cars by individuals.
The clarification comes in the wake of confusion over whether an individual is to be treated as an unregistered supplier of goods under the new indirect tax system rolled out from 1 July.
Inputs from livemint.com