GST input eligible for jeweler Business

This query is : Resolved

Daya (Querist)
Follow

22 December 2024 whether Jewelers can claim GST input for different type of services or Goods received.
if any ineligible then please reply.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

22 December 2024 Jewelers can claim ITC on inputs such as gold, capital goods, and packing materials used in their business. This includes job work charges paid to artisans or goldsmiths who are registered under GST.
According to Section 17(5) of the CGST Act, certain items are excluded from ITC claims. For instance, gifts and free samples do not qualify for ITC. Therefore, if a jeweler provides promotional items without charge, they cannot claim ITC on those costs.
When an unregistered person sells old jewellery to a registered jeweler, this transaction is generally not subject to GST under RCM as it does not constitute a supply in the course of furtherance of business for the seller. Hence, no ITC can be claimed in such cases.