AAR; NO GST ON THE DIFFERENCE BETWEEN PURCHASING, SELLING PRICE OF SECOND HAND GOLD JWELLERY

The Karnataka Authority of Advance Ruling, AAR in the case observed and has ruled that purchasing of second-hand gold which being in the form of jewellery and also the parts of jewellery from unregistered individuals and from selling it to be registered or to the unregistered dealers after meeting it in the form of lumps of gold, the same cannot be subject to GST on the margin difference which being between the sale price and purchase price as it is stipulated under Rule 32(5) of the CGST Rules, 2017

The bench comprising of M.P. Ravi Prasad and Kiran Reddy T. in the case observed and has held that the HSN code for old gold jewellery being 7113, and after melting the same into gold lumps or the irregular shapes of gold, thus, the HSN code being 7108.