Testing of purity of Gold will be classified under SAC 9983 & GST rate applicable is @18%.

Last updated: 20 January 2021

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The Gujarat Authority for Advance Ruling has determined that the testing of gold purity falls under Service Accounting Code (SAC) 9983. Consequently, a Goods and Services Tax (GST) rate of 18% is applicable to these services. This ruling clarifies the tax classification for businesses involved in assessing the purity of gold.

Court :
Gujrat AAR

Brief :
M/s. Uday Laxman Jadhav (Legal name), Shree Ashapuri Touch Refinery (Trade Name), Shop No. 3, Panchtirth Apartment, Nani Mehtwad, Valsad- 396001 having a GSTIN : 24AHIPJ0290Q1Z1, has filed an application for Advance Ruling under Section 97 of CGST Act, 2017 and Section 97 of the GGST Act, 2017 in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the GGST Act.

Citation :
ADVANCE RULING NO. GUJ/GAAR/R/104/2020

GUJARAT AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES TAX
D/5, RAJYA KAR BHAVAN, ASHRAM ROAD,
AHMEDABAD – 380 009.

ADVANCE RULING NO. GUJ/GAAR/R/104/2020
(IN APPLICATION NO. Advance Ruling/SGST&CGST/2020/AR/21)
Date: 14.10.2020

Name and address of the applicant : M/s. Uday Laxman Jadhav (Legal name), Shree Ashapuri Touch Refinery (Trade Name), Shop No. 3, Panchtirth Apartment, Nani Mehtwad, Valsad- 396001.

GSTIN/ User Id of the applicant :24AHIPJ0290Q1Z1

Date of application :28.05.2020

Clause(s) of Section 97(2) of CGST / GGST Act, 2017, under which the question(s) raised. : a) Classification of any goods or services or both
b) Applicability of a notification issued under the provisions of this Act
e) Determination of the liability to pay tax on any goods or services both.
g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or result in a supply of goods or services or both, within the meaning of that term.

Date of Personal Hearing :24.09.2020 (Through Video Conferencing)
Present for the applicant : Shri Kamal J Parekh

M/s. Uday Laxman Jadhav (Legal name), Shree Ashapuri Touch Refinery (Trade Name), Shop No. 3, Panchtirth Apartment, Nani Mehtwad, Valsad- 396001 having a GSTIN : 24AHIPJ0290Q1Z1, has filed an application for Advance Ruling under Section 97 of CGST Act, 2017 and Section 97 of the GGST Act, 2017 in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the GGST Act.

2. M/s. Uday Laxman Jadhav (Legal name), Shree Ashapuri Touch Refinery (Trade Name) is a registered under GST law. The applicant submitted that they are engaged in the providing services of Testing and Refinery of gold.

2.1 Purpose of refine gold:- Gold jewellery is not always all pure gold. The reason is that gold of jewellery is soft. For this reason, refiner must evaluate material to calculate what percentage of pure gold it is. “Karat” a unit of measurement used to know the how much gold is in an alloy.

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