GST on Jewellery Returns: Rules for Shops

How to treat transaction regarding jwellary purchase from customer

Tushar Gupta

20 Points Posted on 27 June 2020

dear respect sir
I am engaged to jwellary shop business
my question is suppose i sale a jwellary to customers and take gst on this sale value.
after 6 months that customer come to my shop and sale same jwellary to me then
what is rule on gst
how to record this transaction
what type of invoice raised

Replies (3)

Quick Summary

When a customer returns jewellery purchased from your shop within six months, it's treated as a sale return. The initial sale had GST applied as output tax. When the customer sells the jewellery back to you, this transaction doesn't typically incur GST for the customer as they aren't collecting tax. You should record this as a purchase from an Unregistered Dealer (URD).

Apurv Bhalinge

20 Points Posted on 27 June 2020

Sale of jewellery to customer is Output GST and your business liability to pay tax collected.
Customer selling the same jewellery back will not have a GST impact (RCM will not be charged) as individual is not collecting GST for sale.
Both transactions are separate even when recorded under same customer head.