Q. Exchange of old jewellery with new jewellery show procedure in gstr-3b for regular dealer

Question

Sir,

A Registered regular scheme bullion  and gold and silver dealer trading transactions exchange of old jewellery with new jewellery for april-24 month.

Doubt:

Dealer exchange of old jewellery with new jewellery transaction show procedure in gstr-3b april-24 return.

Answer 1

Reporting in GSTR-3B:

Outward Supplies (Section 3.1 of GSTR-3B):

The value of the new jewelry sold (after adjusting the value of the old jewelry, if treated as a discount) should be reported under the relevant section for outward taxable supplies (other than zero-rated, nil rated, and exempted).

If the transaction is structured such that the value of the old jewelry is treated as a discount on the sale of new jewelry, then the net amount (value of new jewelry minus the value of old jewelry) should be reported as the taxable value.

Inward Supplies (Section 3.2 of GSTR-3B):

If the purchase of old jewelry is treated as an inward supply (purchase from unregistered persons), and if it is liable to GST under reverse charge mechanism (RCM), it should be reported in this section. However, typically, purchases of old jewelry from individuals (consumers) are not subject to GST under RCM, as the supply is not from a registered person.

Input Tax Credit (ITC) (Section 4 of GSTR-3B):

The dealer can claim ITC on the GST paid on inward supplies that are used in the course or furtherance of business, subject to eligibility and conditions under the GST law. If the old jewelry is treated as an inward supply and is processed or used in making new jewelry, any GST paid on such inward supplies that are eligible for ITC can be claimed here. However, in the case of old jewelry bought back from consumers, there may not be any GST paid, and hence, no ITC would be available.

Regards, CA. Praveen Sharma

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