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Exchange of Jewellery

Himanshu Joshi (Accountant) (42 Points)

20 July 2017

what to do when a customer brings old jewellery for exchange and purchases new jewellery against old jewellery.

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (176622 Points)
Replied 20 July 2017

Any thing against is called barter exchange..........

Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money.

So, the value of the barter exchange is to be taken into account for GST taxability!!

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Karan Bohra (29 Points)
Replied 20 July 2017

There is press release on the concerned matter which states that there will be no gst on the old gold given under reverse charge mechanism as the same is not for business or furtherance of business purpose of individual.

Auctions Gold (31 Points)
Replied 21 July 2017

banks and nbfc are only custodian of old gold jewellery. .so the are not allowed to trade in it..they can auction on as is where is basis ...only..and make bidders bill as old gold jewellery. no gst must be charged....as custodians are not allowed to trade in sale or buying of old gold jewellery by RBI rules n regulations .if they charge any gst they will have to payback the gst to their clients with penalty and interest by law.