Source: News Bharati English14 Jul 2017 09:30:34

New Delhi, July 14: The Centre has clarified that sale of old jewellery and old vehicles will not attract any taxes under GST. In a press statement, it said that 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. Similarly, there won't be any GST levied on sale of old cars or two-wheelers.

Ministry of Finance said that 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.

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 sell.

Also Centre has rubbished rumours that GST will be levied on boarding and lodging services provided by schools or hostels. The Finance Ministry clarified that these services are exempted from taxes. It was earlier reported that lodging and boarding services in hostels operated by educational institutions from the pre-school to higher secondary level will attract 18% GST.

GST seeks to subsume all central indirect levies like excise duty, countervailing duty and service tax and also state taxes such as value added tax, entry tax and luxury tax, to create a single, pan-India market.

Notably, Services like religious pilgrimage, healthcare, education, skill development and journalistic activities will remain tax-free under the GST regime. Crude oil, petrol, diesel, aviation turbine fuel (ATF) and natural gas are also being kept out of GST net.