GST leviable only on difference between selling and purchase price of second hand jewellery: AAR Karnataka

In the recent advance ruling issued by the Karnataka Advance Ruling Authorities in the case of M/s Aadhya Gold Private Limited, It was ruled that Margin scheme in terms of Rule 32(5) of the CGST Rules, 2017 is applicable to the assessee wherein, old gold jewellery is sold ‘as such’ after minor cleaning/processing without melting the same into bullion. It was ruled that the Applicant is dealing in second hand jewellery and therefore GST shall be paid at the rate of 3% only on the margin value viz., difference between selling price and purchase price.