Will 3% GST be imposed for old gold?
Notice has been issued that GST will be levied on the sale of old gold jewellery. 3% of GST is implemented. If you sell your old jewellery for one lakh rupees, Rs. 3000/ – will be deducted as GST.
Information that 3% GST will be levied on the sale of old gold in India is now being shared on social networking sites including WhatsApp and Facebook. People are shocked to see this information as the practice of selling old gold for demand is high in India.
When we searched the news regarding this claim, the government has already responded to this information in 2017.
As explained by the Federal Ministry of Finance in 2017, “when the public sells their old gold jewellery to jewellers, the jewellery is not subject to GST. Individuals do not sell old gold for professional business. Instead, they sell gold jewellery only for their own needs. Therefore, it is not subject to GST”.
However, former finance minister Arun Jaitley had said that if an unregistered gold jewellery supplier sells it to a registered supplier, the tax will be applicable under RCS. That means goldsmiths/jewellery-supplier have to pay 3% GST tax when buying old gold jewellery from individuals.