New Delhi: Individuals selling old jewellery to traders or hostel accommodation provided to students by educational institutions will not be subject to goods and services tax (GST), the finance ministry clarified on Thursday. The ministry stated that sale of old jewellery to a trader is not taxable as it is not a transaction made in the course of running a business. The ministry said that since sale of old jewellery is not the business of the seller, the transaction cannot be taken as a taxable supply of the item. However, if an unregistered supplier of gold ornaments sells it to a registered supplier, the registered trader will have to remit to the government a 3% GST under a system called reverse charge. Implementation of GST has been smooth over the last fortnight with businesses and traders not reporting any major hassles.

Source: Mint July 13, 2017 15:42 UTC