{"id":3333,"date":"2017-07-14T10:42:29","date_gmt":"2017-07-14T05:12:29","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=3333"},"modified":"2025-09-27T23:16:16","modified_gmt":"2025-09-27T17:46:16","slug":"no-gst-on-sale-of-old-gold-jewellery-cars-by-individuals","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/no-gst-on-sale-of-old-gold-jewellery-cars-by-individuals\/","title":{"rendered":"No GST on sale of old gold jewelry, Cars by individuals"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a08f3d525268\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a08f3d525268\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/no-gst-on-sale-of-old-gold-jewellery-cars-by-individuals\/#No_GST_on_sale_of_old_gold_jewellery_cars_by_individuals_clarifies_govt\" title=\"No GST on sale of old gold jewellery, cars by individuals, clarifies govt\">No GST on sale of old gold jewellery, cars by individuals, clarifies govt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/no-gst-on-sale-of-old-gold-jewellery-cars-by-individuals\/#GST_on_the_sale_of_old_cars\" title=\"GST on the sale of old cars\">GST on the sale of old cars<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/no-gst-on-sale-of-old-gold-jewellery-cars-by-individuals\/#Gold_CoinsBars\" title=\"Gold Coins\/Bars\">Gold Coins\/Bars<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/no-gst-on-sale-of-old-gold-jewellery-cars-by-individuals\/#Pros\" title=\"Pros\">Pros<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/no-gst-on-sale-of-old-gold-jewellery-cars-by-individuals\/#Gold_Jewellery\" title=\"Gold Jewellery\">Gold Jewellery<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/no-gst-on-sale-of-old-gold-jewellery-cars-by-individuals\/#Pros-2\" title=\"Pros\">Pros<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/no-gst-on-sale-of-old-gold-jewellery-cars-by-individuals\/#Cons\" title=\"Cons\">Cons<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/no-gst-on-sale-of-old-gold-jewellery-cars-by-individuals\/#Gold_Coin_vs_Gold_Jewellery_%E2%80%93_Comparison\" title=\"Gold Coin vs Gold Jewellery \u2013 Comparison\">Gold Coin vs Gold Jewellery \u2013 Comparison<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/Various-jewellery-of-India.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8882\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/Various-jewellery-of-India.jpg\" alt=\"www.carajput.com; GST\" width=\"823\" height=\"463\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/Various-jewellery-of-India.jpg 480w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/Various-jewellery-of-India-300x169.jpg 300w\" sizes=\"(max-width: 823px) 100vw, 823px\" \/><\/a><\/p>\n<div class=\"mceTemp\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"No_GST_on_sale_of_old_gold_jewellery_cars_by_individuals_clarifies_govt\"><\/span><span style=\"color: #000080;\">No GST on sale of old gold jewellery, cars by individuals, clarifies govt<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Individuals who want to sell their old jewellery or old vehicles will not have to pay GST \u00a0as the sale is not for furthering any business, the Revenue department clarified on Thursday.<\/li>\n<li>Income tax Secretary Hasmukh Adhia had said that &#8216;purchase of old gold jewellery by a jeweller from a consumer will be subject to GST at the rate of 3 percent under reverse charge mechanism in terms of the provisions contained in Section 9(4) of the <a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">Central GST Act, 2017<\/a>.&#8217;<\/li>\n<li>The income tax dept said that the said section has to be read in conjunction with another section and &#8220;even though the sale of old gold by an individual is for a consideration, it cannot be said to be in the course or furtherance of his business (as selling old gold jewellery is not the business of the said individual), and hence does not qualify to be a supply per se.&#8221;ge. Reuters<\/li>\n<li>&#8220;Accordingly, the sale of old jewellery by an individual to a jeweller will not attract the provisions of Section 9(4) and jeweller will not be liable to pay tax under reverse charge mechanism (RCM) on such purchases,&#8221; it said.<\/li>\n<li>Revenue department officials said the same principal will apply on sale of old cars or two-wheelers and no <a href=\"https:\/\/www.caindelhiindia.com\/blog\/application-of-gst-on-contribution-by-rwa-members\/\">GST <\/a>will be payable even though the supply would be for a consideration.<\/li>\n<li>The statement said that Section 9(4) of the said Act mandates that tax on supply of taxable goods (gold in this case) by an unregistered supplier (an individual in this case) to a registered person (the jeweller in this case) will be paid by the registered person (the jeweller in this case) under reverse charge mechanism.<\/li>\n<li>But since the sale is not in consideration for the furtherance of business no tax will apply.<\/li>\n<li>It however said the tax would apply if an unregistered business sells gold ornaments to registered supplier.<\/li>\n<li>&#8220;However, if an unregistered supplier of gold ornaments sells it to registered supplier, the tax under RCM will apply,&#8221; it added.<\/li>\n<li>A supplier is defined as the one who buys or sells in furtherance of his business. We look forward for your valuable comment www.carajput.com<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-24660\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/Gold.jpg\" alt=\"Gold \" width=\"1080\" height=\"916\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/Gold.jpg 1080w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/Gold-300x254.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/Gold-1024x869.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/Gold-768x651.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/Gold-800x679.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"GST_on_the_sale_of_old_cars\"><\/span><span style=\"color: #000080;\"><strong>GST on the sale of old cars<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>For those interested in understanding who is impacted and required to pay GST on the sale of old cars, CNBC provides a simplified explanation.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-28125\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/GST-on-Ev-.jpg\" alt=\"GST on the sale of old cars\" width=\"911\" height=\"1280\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/GST-on-Ev-.jpg 911w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/GST-on-Ev--214x300.jpg 214w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/GST-on-Ev--729x1024.jpg 729w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/GST-on-Ev--768x1079.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2017\/07\/GST-on-Ev--800x1124.jpg 800w\" sizes=\"(max-width: 911px) 100vw, 911px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Gold_CoinsBars\"><\/span><span style=\"color: #000080;\"><strong>Gold Coins\/Bars<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Buy gold coins\/bars for pure investment.<br \/>\nBuy jewellery for personal or family use with emotional value<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Pros\"><\/span>Pros<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Purity: Usually 22K or 24K, often with certification<\/li>\n<li>No Making Charges: Value is based almost entirely on gold price<\/li>\n<li>High Liquidity: Easily sold or exchanged at banks and jewellers<\/li>\n<li>Investment-Friendly: Closely tracks actual gold market value<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Gold_Jewellery\"><\/span>Gold Jewellery<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Pros-2\"><\/span>Pros<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Dual Purpose: Acts as both investment and wearable asset<\/li>\n<li>Emotional Value: Especially useful during weddings and festivals<\/li>\n<li>Buyback Friendly: Most jewellers accept old ornaments<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Cons\"><\/span>Cons<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Making &amp; Wastage Charges: Can be 8\u201325%, reducing resale value<\/li>\n<li>Purity Concerns: May include 18K\/20K gold or stones<\/li>\n<li>Design Depreciation: Trendy styles may lose resale demand<\/li>\n<\/ul>\n<h3 data-start=\"135\" data-end=\"181\"><span class=\"ez-toc-section\" id=\"Gold_Coin_vs_Gold_Jewellery_%E2%80%93_Comparison\"><\/span><span style=\"color: #000080;\"><strong data-start=\"137\" data-end=\"181\">Gold Coin vs Gold Jewellery \u2013 Comparison<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"_tableContainer_1rjym_1\">\n<div class=\"group _tableWrapper_1rjym_13 flex w-fit flex-col-reverse\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" data-start=\"183\" data-end=\"1578\">\n<thead data-start=\"183\" data-end=\"234\">\n<tr data-start=\"183\" data-end=\"234\">\n<th data-start=\"183\" data-end=\"196\" data-col-size=\"sm\"><strong data-start=\"185\" data-end=\"195\">Aspect<\/strong><\/th>\n<th data-start=\"196\" data-end=\"212\" data-col-size=\"md\"><strong data-start=\"198\" data-end=\"211\">Gold Coin<\/strong><\/th>\n<th data-start=\"212\" data-end=\"234\" data-col-size=\"md\"><strong data-start=\"214\" data-end=\"232\">Gold Jewellery<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"288\" data-end=\"1578\">\n<tr data-start=\"288\" data-end=\"410\">\n<td data-start=\"288\" data-end=\"299\" data-col-size=\"sm\">Form<\/td>\n<td data-start=\"299\" data-end=\"347\" data-col-size=\"md\">Standardised coin\/bar (24K, often 999 purity)<\/td>\n<td data-start=\"347\" data-end=\"410\" data-col-size=\"md\">Ornaments, bangles, necklaces, rings, etc. (often 22K, 18K)<\/td>\n<\/tr>\n<tr data-start=\"411\" data-end=\"511\">\n<td data-start=\"411\" data-end=\"424\" data-col-size=\"sm\">Purity<\/td>\n<td data-start=\"424\" data-end=\"455\" data-col-size=\"md\">Higher purity (close to 24K)<\/td>\n<td data-start=\"455\" data-end=\"511\" data-col-size=\"md\">Lower purity due to alloy (to add strength &amp; design)<\/td>\n<\/tr>\n<tr data-start=\"512\" data-end=\"636\">\n<td data-start=\"512\" data-end=\"533\" data-col-size=\"sm\">Making Charges<\/td>\n<td data-start=\"533\" data-end=\"573\" data-col-size=\"md\">Minimal (only minting charges, ~1\u20132%)<\/td>\n<td data-start=\"573\" data-end=\"636\" data-col-size=\"md\">High making charges (5% \u2013 25% depending on design &amp; labour)<\/td>\n<\/tr>\n<tr data-start=\"637\" data-end=\"799\">\n<td data-start=\"637\" data-end=\"659\" data-col-size=\"sm\">GST on Purchase<\/td>\n<td data-start=\"659\" data-end=\"714\" data-col-size=\"md\">3% GST on gold value + 5% on making charges (if any)<\/td>\n<td data-start=\"714\" data-end=\"799\" data-col-size=\"md\">3% GST on gold value + 5% on making charges (higher impact due to labour charges)<\/td>\n<\/tr>\n<tr data-start=\"800\" data-end=\"942\">\n<td data-start=\"800\" data-end=\"816\" data-col-size=\"sm\">Liquidity<\/td>\n<td data-start=\"816\" data-end=\"868\" data-col-size=\"md\">Easy to sell at bullion dealers, banks, jewellers<\/td>\n<td data-start=\"868\" data-end=\"942\" data-col-size=\"md\">Easy to sell but resale value reduced due to making charges deductions<\/td>\n<\/tr>\n<tr data-start=\"943\" data-end=\"1097\">\n<td data-start=\"943\" data-end=\"962\" data-col-size=\"sm\">Resale Value<\/td>\n<td data-start=\"962\" data-end=\"1021\" data-col-size=\"md\">Close to market rate (deduction mainly for mint premium)<\/td>\n<td data-start=\"1021\" data-end=\"1097\" data-col-size=\"md\">Resale often at scrap value of gold + deduction for impurities &amp; wastage<\/td>\n<\/tr>\n<tr data-start=\"1098\" data-end=\"1175\">\n<td data-start=\"1098\" data-end=\"1113\" data-col-size=\"sm\">Use Case<\/td>\n<td data-start=\"1113\" data-end=\"1131\" data-col-size=\"md\">Pure investment<\/td>\n<td data-start=\"1131\" data-end=\"1175\" data-col-size=\"md\">Dual purpose \u2013 investment + personal use<\/td>\n<\/tr>\n<tr data-start=\"1176\" data-end=\"1258\">\n<td data-start=\"1176\" data-end=\"1204\" data-col-size=\"sm\">Storage &amp; Portability<\/td>\n<td data-start=\"1204\" data-end=\"1229\" data-col-size=\"md\">Compact, easy to store<\/td>\n<td data-start=\"1229\" data-end=\"1258\" data-col-size=\"md\">Bulky, needs safe storage<\/td>\n<\/tr>\n<tr data-start=\"1259\" data-end=\"1385\">\n<td data-start=\"1259\" data-end=\"1283\" data-col-size=\"sm\">Capital Gains Tax<\/td>\n<td data-start=\"1283\" data-end=\"1334\" data-col-size=\"md\">LTCG after 3 years \u2192 20% with indexation benefit<\/td>\n<td data-start=\"1334\" data-end=\"1385\" data-col-size=\"md\">Same as gold coins (treated as \u201ccapital asset\u201d)<\/td>\n<\/tr>\n<tr data-start=\"1386\" data-end=\"1473\">\n<td data-start=\"1386\" data-end=\"1403\" data-col-size=\"sm\">Wealth Tax<\/td>\n<td data-start=\"1403\" data-end=\"1451\" data-col-size=\"md\">(Currently abolished, but earlier applicable)<\/td>\n<td data-start=\"1451\" data-end=\"1473\" data-col-size=\"md\">Same as gold coins<\/td>\n<\/tr>\n<tr data-start=\"1474\" data-end=\"1578\">\n<td data-start=\"1474\" data-end=\"1484\" data-col-size=\"sm\">TDS<\/td>\n<td data-start=\"1484\" data-end=\"1557\" data-col-size=\"md\">No TDS on purchase (except if bought in cash &gt; \u20b92 lakh, PAN mandatory)<\/td>\n<td data-start=\"1557\" data-end=\"1578\" data-col-size=\"md\">Same rule applies<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<ul data-start=\"1607\" data-end=\"1879\">\n<li data-start=\"1607\" data-end=\"1727\">\n<p data-start=\"1609\" data-end=\"1727\">Gold Coins \u2192 Better for pure investment due to higher purity, lower making charges, and better resale value.<\/p>\n<\/li>\n<li data-start=\"1728\" data-end=\"1879\">\n<p data-start=\"1730\" data-end=\"1879\">Gold Jewellery \u2192 Better for use + emotional value, but not efficient as an investment (loss of value on resale due to high making charges).<\/p>\n<\/li>\n<\/ul>\n<p><strong><em><u>Read more about: <\/u><\/em><\/strong><\/p>\n<p><strong><em><a href=\"https:\/\/carajput.com\/blog\/what-is-core-business-activity-in-gst\/\">What is core Business Activity GST<\/a><\/em><\/strong><\/p>\n<p><strong><em><a href=\"https:\/\/carajput.com\/blog\/all-about-gst-offenses-penalties-appeals\/\">All about GST Offenses, Penalties, and Appeals<\/a><\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>No GST on sale of old gold jewellery, cars by individuals, clarifies govt Individuals who want to sell their old jewellery or old vehicles will not have to pay GST \u00a0as the sale is not for furthering any business, the Revenue department clarified on Thursday. Income tax Secretary Hasmukh Adhia had said that &#8216;purchase of &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[1913,504,503,5273,1911,1910],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3333"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=3333"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3333\/revisions"}],"predecessor-version":[{"id":30061,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3333\/revisions\/30061"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=3333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=3333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=3333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}