GST ON PAINTINGS,OLD CAR/OLD JEWELLERY, ANTIQUE JEWELLERY /OLD WATCHES/ANTIQUE BOOKS- GST AAR MAHARASHTRA
MAHARASHTRA AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES TAX
Case Name: Astaguru Auction House Private Limited
Advance Ruling No. GST-ARA- 40/2020-21/B-27
Date of Judgement/Order: 08/03/2022
(Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
For reasons as discussed in the body of the order, the questions are answered thus –
Question 1: – The classification and HSN code of goods listed in table (as given in Annexure II of application as “Issue for Determination”) and GST rates applicable to such goods?
(i) Paintings:- bought from individual art collectors will be classifiable under Heading 9701 and the applicant is liable to pay GST of 12% .
(ii) Old Cars:- Motor Vehicles fall under Heading 8703 of the GST Tariff. All the items under 8703 will attract 28% GST except Tariff item 870310 10; Sub-heading 8703 80. However old cars will attract a lower rate of tax as per Notification No. 08/2018 CT (Rate) dated 25.01.2018. As per the said Notification, the lesser rate of tax i.e. 18 % is applicable to old cars provided the conditions mentioned therein are fulfilled.
(iii) Old Jewellery:- Articles of jewellery and parts thereof, of precious metal will fall under Heading 7113 of the GST Tariff attracting 3% GST.
(iv) Antique Jewellery :- of age exceeding 100 years:- Antique jewellery of age exceeding 100 years will fall under Tariff item 9706 00 00 and will be liable to tax @ 12% GST.
(v) Old watches:- Wrist watches, pocket-watches and other watches, including stopwatches, with case of precious metal or of metal clad with precious metal will fall under CH 9101 of the GST Tariff and Wrist watches, pocket-watches and other watches, including stop-watches, other than those of Heading 9101 will fall under Heading 9102 of the said Tariff. The rate of GST is 18% and the same will be applicable even to Old Watches.
(vi) Antique watches:- of age exceeding 100 years:- Antique watches of age exceeding 100 years will fall under Tariff item 9706 00 00 and will be liable to tax @ 12% GST.
(vii) Antique Books :- Antique books would fall under HSN 9706 of the GST Tariff and would attract GST @ 12%.
Question 2: – Whether Applicant dealing in second hand goods is required to pay tax on the difference between selling price and purchase price as stipulated in Rule 32(5) of CGST Rules, 2017?
Answer:- Answered in the affirmative in respect of the impugned goods. The provisions of Rule 32(5) of CGST Rules will be applicable to applicant in respect of second hand goods i.e used goods which are purchased by them and then sold.
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