Home Case Index All Cases GST GST + AAR GST - 2022 (4) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 1137 - AAR - GSTCalculation of GST - used/second hand gold jewellery or ornaments from persons who are not registered under GST - at the time of sale of such goods there is no change in the form/nature of such goods and ITC will also not be availed on such purchase - whether GST is to be paid only on the difference between the selling price and purchase price as stipulated under Rule 32(5) of CGST Rules, 2017? - failure to furnish the substantiating documents as required by this authority - HELD THAT:- Applicant is stated to be engaged in the business of buying and selling of old/used/second hand gold jewellery/ornament from the unregistered person, who are all general public. They have stated that these articles will be sold ‘as such’ to the end consumers, i.e., the used/second hand gold ornaments so purchased are sold in the same form in which they are purchased to another registered or unregistered person, except for some minor processing in the form of cleaning and polishing, without altering the nature of such ornament/jewellery. It is seen that the applicant is engaged in taxable supply of jewellery. They are dealing in buying the jewellery from the individuals as seen from the document furnished. To substantiate that the so purchased jewellery was subjected to only minor process which do not change the nature of the goods, the applicant has not furnished any documentary evidence, though the same was specifically called for during the hearing. The applicant has submitted a sample invoice no. ARA/07/2021-2022 dt. 01.12.2021 mentioning `sale of Used Gold Ornament’ issued to Mrs. Aarthi Abinaya, for the gold ornaments namely stud with jimikki and ring. However, Purchase receipt number/grammage for such purchase is not indicated in the said sale invoice. Also, in the purchase invoice submitted the ornaments said to have purchased do not include the ‘Stud with Jimikki’ and ‘ring’ and hence from the furnished documents, we are constrained to verify the claim of the applicant that he undertakes sale of used goods. Advance ruling is a facility extended and the person seeking the same has to furnish the details as required by this authority to verify and pronounce the ruling - In the instant case, from the documents furnished, there is no clear cut link between purchase & sale, and the applicant do not furnish the purchase details and grammage in the sale invoice. Thus the applicant has not furnished with the documentary proof that he satisfies the conditions provided under Rule 32 (5) enabling him to adopt the differential value as prescribed in the said rule. Hence, No ruling is extended.
|