Selling old jewellery won’t attract GST
New Delhi: Individuals selling old jewellery to traders or hostel accommodation provided to students by educational institutions will not be subject to goods and services tax (GST), the finance ministry clarified on Thursday.
The ministry stated that sale of old jewellery to a trader is not taxable as it is not a transaction made in the course of running a business.
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.
The ministry said that since sale of old jewellery is not the business of the seller, the transaction cannot be taken as a taxable supply of the item. However, if an unregistered supplier of gold ornaments sells it to a registered supplier, the registered trader will have to remit to the government a 3% GST under a system called reverse charge.
In a separate clarification, the ministry said that hostel accommodation and other services provided by educational institutions to students, faculty and staff are not taxable. “There is no change in tax liability relating to education and related services in the GST era, except reduction in tax rate on certain items of education,” the ministry said.
Implementation of GST has been smooth over the last fortnight with businesses and traders not reporting any major hassles. However, the robustness of the IT infrastructure supporting GST is likely to be put to the test when returns are filed as part of the first cycle in September.
- BCCI, sports ministry discuss NADA, India-Pakistan match in ICC Test Championship
- To buy, or rent a home, that is the question
- Different ways to buy cryptocurrencies in India
- If total income is not taxable, senior citizens should keep bulk of their money in fixed deposits
- How to choose a new fund offer (NFO)