GST LIABLITY ON OLD GOLD JEWELLERY PURCHASED & SOLD AFTER MELTING & HSN CODE (GST AAR KARNATAKA)

GST LIABLITY ON OLD GOLD JEWELLERY PURCHASED & SOLD AFTER MELTING & HSN CODE (GST AAR KARNATAKA)

KARNATAKA AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

WHITE GOLD BULLION PRIVATE LIMITED

(GST AAR KARNATAKA)

Appeal Number: Advance Ruling No KAR ADRG 20/2023

Date of Judgment/Order: 15th May 2023

RULING

1. The applicant purchasing second hand gold in the form of jewellery /parts of jewellery, from unregistered individuals and selling to registered / unregistered dealers, after melting the same, in the form of lumps / irregular shapes of gold, cannot pay GST on the margin difference between the sale price and purchase price as stipulated in Rule 32(5) of CGST Rules, 2017.
2. The HSN Code for Old Gold Jewellery is 7113 and after melting into gold lumps or irregular shapes of gold the HSN Code is 7108.