How to maintain purchase detail when old jewellery purchased from unregistered dealer . and 3% tax on the sale under marging scheme on difference of purchase & sale value.further shopkeeper is allowed itc on the same who purchased the same?

Reply— As per the press release by CBIC dated 13 July 2017, even though the sale of old gold by an individual is for a consideration, it cannot be said to be in the course or furtherance of his business (as selling old gold jewellery is not the business of the said person), and hence does not qualify to be a supply per se. Accordingly the sale of old jewellery by a person to a jeweller will not attract GST. Threfeore, jeweller is not required to maintain any specific record for such purchase. It is advised to record as a general cash purchase without GST.

 In the case of applicant dealing in second hand goods and invoicing his supplies as “second hand goods”, the valuation of supply of second hand Gold jewellery which are purchased from individuals who are not registered under GST and there is no change in the form and nature of such goods, can be made as prescribed under sub-rule (5) of Rule 32 of the Central Goods and Service Tax Rules. (Refer advance ruling in matter of Attica Gold Pvt. Limited pronounced by AAR Karnataka, dated 23.03.2020)