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Informative

Supply of Pre-Owned Gold/Diamond Jewellery to same person after Alteration is Supply of Service, attracts 5% GST: AAR

Update / Judgement Date

06 Oct 2024

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Excise, VAT & CustomGST

The Authority for Advance Rulings (AAR) ruled that the supply of pre-owned gold and diamond jewelry after alteration to the same person constitutes a "supply of service" and attracts a 5% GST. The ruling clarifies the tax treatment for businesses dealing in altered pre-owned jewelry, which may have previously been classified as a sale of goods. The decision aims to bring consistency in the taxation of such transactions under the GST regime.