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GST on sale of personal jewellery by registered person

mahipal m. chande (ca) (216 Points)

22 April 2023

A GST registered person sold his ancestral personal jewellery to jeweller ?

is gst leviable ? will it be treated as supply provided is not in the course of business nor furtherance of business.

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160484 Points)
Replied 22 April 2023

GST is not charged if (even if GST registered, but not jeweler) individuals sell gold jewellery or exchange gold ornaments at jewellery shops. It is not considered furtherance of business and is out of the scope of supply under GST.

ashish (ca) (82 Points)
Replied 22 April 2023

As per the provisions of the GST Act, any supply of goods or services made in the course or furtherance of business is liable to GST. In the given scenario, the sale of ancestral personal jewellery by a GST registered person to a jeweler would not be considered as a supply made in the course or furtherance of business. Therefore, such a transaction would not attract GST.

According to Schedule III of the CGST Act, 2017, any transfer or disposal of goods that are personal or used solely for personal purposes of the transferor is not considered as a supply in the course or furtherance of business. Since the jewellery in question is ancestral personal jewellery, it would be considered as goods used solely for personal purposes of the transferor, and hence the sale of such jewellery would not attract GST.

However, it is important to note that if the GST registered person was engaged in the business of buying and selling of jewellery, and the sale of ancestral personal jewellery was made in the course or furtherance of such business, then it would be considered as a supply liable to GST.

In summary, if the sale of ancestral personal jewellery is not made in the course or furtherance of business, then it would not attract GST as per the provisions of the GST Act.