Case Law Details
In re Best Money Gold Jewellery Limited ( GST AAR Kerala)
The AAR, Kerala, in the matter of M/s Best Money Gold Jewellery Ltd. [Advance Ruling No. KER/06/2023 dated March 02, 2023] ruled that value of gold will not diminish even if it is exchanged among 10 different users in a span of 2 years as a jewellery piece of 22 carats remains 22 carats even after changing hands. Thus, the term ‘second hand’ does not hold any meaning when it comes to items such as gold, land, currency. Accordingly, the assessee would not be eligible to value gold ornaments as per Rule 32(5) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”).
Facts:
M/s. Best Money Gold Jewelry Ltd (“the Applicant”) is engaged in the business of buying and selling of old/second-hand gold jewellery from unregistered persons and make minor processing changes in the form of cleaning and polishing and sells them to other customers.
The Applicant submitted that since the jewellery was purchased from unregistered person and therefore, there was no scope for availment of the ITC as per Section 16 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”).
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