TaxTMI 
TaxTMI 
Dear Sir / Madam,
GST Registered Gold Merchant used his wife personal Jewelry in his business, will there be any legal compliance?
If no issue then he has to pay 3% on sale value of Jewel. Please clarify
GST on Gold Jewel
17 Nov 2021 
7 Replies 
2293 Views Asked by
GST on personal gold used in business: sale of the jewellery attracts GST liability upon onward sale.
A registered gold merchant using personal jewellery in business does not trigger reverse charge under Section 9(4) on conversion, but an onward sale by the registered person is liable to GST at the rate applicable to gold jewellery; conversion of a capital asset into stock-in-trade is deemed a transfer attracting capital gains tax, and subsequent sale is taxable as business income, with accounting treatment affecting Income Tax outcomes. (AI Summary)
A registered gold merchant using personal jewellery in business does not trigger reverse charge under Section 9(4) on conversion, but an onward sale by the registered person is liable to GST at the rate applicable to gold jewellery; conversion of a capital asset into stock-in-trade is deemed a transfer attracting capital gains tax, and subsequent sale is taxable as business income, with accounting treatment affecting Income Tax outcomes. (AI Summary)