In what should come as a welcome relief, the Centre said the sale of old gold won't be subject to 3 percent goods and services tax (GST). Similarly, it also clarified that sale of old vehicles by individuals also won't attract GST, according to a media report.
"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," the Indian Express reported, quoting a government of India statement.
"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," the statement further said.
But if the transaction in old gold entails sale by an unregistered supplier to a registered one, the provisions of GST will apply.
The clarification lays to rest a controversy that started after revenue secretary Hasmukh Adhia, during the course of a GST Masterclass, said transactions in old gold will be taxed under the new regime, the Indian Express said.
The logic will be applied to old cars and scooters also, the newspaper said, citing revenue officials.
The uncertainty prevailing in various sectors over the implementation of GST would not only reflect in weak Q1 numbers, but also stay for a quarter or two more, according to an analyst.