Case Law Details
In Re Best Money Gold Jewellery Limited (GST AAR Tamilnadu)
Q. In case the applicant has purchased used/second hand gold jewellery or ornaments from persons who are not registered under GST and that 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, if so the case, 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?
A. During the hearing held on 20.01.2022, the applicant was specifically asked to furnish ‘write-up on the process undertaken from Purchase of the Old Gold to the end sale with the documents/trail of accounts at each stage along with accounting for sale as second-hand’. The applicant did not furnish the details and notice was sent to him on 09.02.2022 and on 02.03.2022 requiring him to furnish such details. The applicant has furnished the detailed flow chart exhibiting the process of purchase and sale of old gold/jewels, but the same is not substantiated with Purchase to end stage documents 85 the accounting of the purchase, process undertaken and sale of such goods as required by this Authority. 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 85 sale, and the applicant do not furnish the purchase details and grarnmage 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.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, TAMILNADU
Note: Any appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
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