RCM is applicable where registered dealers purchased goods or services or both from unregistered dealer in aggregate of expenses exceeds Rs.5000/- per day on all such expenses.However, Jewellers are purchases old gold from customers against their sales. My question is , where this exemption limit also applicable to old gold purchase or is exempted from this notification 8/2017. please clarify in this regards.
08 August 2017
however, as per notification 10/2017, where old gold purchased from individual and huf are exempted from RCM is it right. Then no need to pay GST on URD old gold purchase
08 August 2017
You will have to show yourself as second hand goods dealer. Whatever jewellery you purchase you will have to sell them as it is or with minor repairs such that it doesnt lose its identity. It is not clear whether in a single registration a person can show himself as both second hand goods dealer and normal dealer.
08 August 2017
Sorry for mentioning wrong notification no. So many peoples are thinking that RCM is not applicable to old gold purchase. pls clarify in this regard
08 August 2017
What happened that our Revenue Secretary in one of his lectures said that RCM on purchase of old jewellery from unregistered person will be applicable. Next day our Finance Minister through a press release said that RCM is not applicable as it is not in the course of business and its just a one time transaction. However if you see the definition of business under sub clause 3 of the definition you will find that even one time transaction will be included in business therefore as per law RCM will be applicable. The confusion you stated is due to difference in opinion between our Revenue Secretary and Finance Minister. As per law RCM applicable. If you dont apply RCM you might face litigation a year later.
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