The service of refine of old gold jewellery or coins/ biscuit as well as testing of purity of gold will be covered under Mixed supply, GST rate would be 18 %
Classification of service— In the instant case, the applicant submitted that they are engaged in the work of refining of pure gold from old jewellery/coins received from the service recipient. They are also doing the work of conversion of gold jewellery into coins/biscuits as per the specification given by service recipient. Further, they are engaged in the work of testing of purity of gold and issue the certificate of purity of gold to the customer, who have supplied the gold to the applicant. Also the applicant carried out testing of purity of gold which are converted into pure gold from old gold (22K gold) jewellery or coins/ biscuits after carrying out the certain process to extract the pure gold.
The applicant sought the Advance Ruling on the following questions :
1. Whether services of ;
(i) Refining of gold from old jewellery and coins/biscuits, and
(ii) Conversion of old gold jewellery into coins/biscuits as per specification given by service recipient;
Provided to registered person will be covered under the definition of job work under section 2 (68) of CGST Act, 2017?
What is the classification and rate of tax for these services provided to registered person and unregistered person?
2. What is the classification and rate of tax for services of testing of purity of gold?
3. If the applicant rendered the service of refine of old gold jewellery or coins/ biscuit as well as testing of purity of gold, then it will be considered as composite supply? If yes, what is the rate of tax applicable on it?
4. What are the consequence if, the applicant charged more or less the rate of services of refining gold than the actual rate?
Held that— Above services provided will be covered under the definition of Job work under Section 2(68) of CGST Act, 2017 only when provided to registered person and not as Job work when provided to un-registered person.
Above Services merit classification under SAC 9988. The rate of GST for the above service provided to registered person is 5%. The rate of GST for the above service provided to un-registered person is liable to 18%.
The classification of testing of purity of gold is 9983 and GST rate is liable to 18 %.
The service of refine of old gold jewellery or coins/ biscuit as well as testing of purity of gold will be covered under Mixed supply and GST rate would be 18 %
The service of refine of old gold jewellery or coins/ biscuit as well as testing of purity of gold will be covered under Mixed supply, GST rate would be 18 %
Classification of service— In the instant case, the applicant submitted that they are engaged in the work of refining of pure gold from old jewellery/coins received from the service recipient. They are also doing the work of conversion of gold jewellery into coins/biscuits as per the specification given by service recipient. Further, they are engaged in the work of testing of purity of gold and issue the certificate of purity of gold to the customer, who have supplied the gold to the applicant. Also the applicant carried out testing of purity of gold which are converted into pure gold from old gold (22K gold) jewellery or coins/ biscuits after carrying out the certain process to extract the pure gold.
The applicant sought the Advance Ruling on the following questions :
1. Whether services of ;
(i) Refining of gold from old jewellery and coins/biscuits, and
(ii) Conversion of old gold jewellery into coins/biscuits as per specification given by service recipient;
Provided to registered person will be covered under the definition of job work under section 2 (68) of CGST Act, 2017?
What is the classification and rate of tax for these services provided to registered person and unregistered person?
2. What is the classification and rate of tax for services of testing of purity of gold?
3. If the applicant rendered the service of refine of old gold jewellery or coins/ biscuit as well as testing of purity of gold, then it will be considered as composite supply? If yes, what is the rate of tax applicable on it?
4. What are the consequence if, the applicant charged more or less the rate of services of refining gold than the actual rate?
Held that— Above services provided will be covered under the definition of Job work under Section 2(68) of CGST Act, 2017 only when provided to registered person and not as Job work when provided to un-registered person.
Above Services merit classification under SAC 9988. The rate of GST for the above service provided to registered person is 5%. The rate of GST for the above service provided to un-registered person is liable to 18%.
The classification of testing of purity of gold is 9983 and GST rate is liable to 18 %.
The service of refine of old gold jewellery or coins/ biscuit as well as testing of purity of gold will be covered under Mixed supply and GST rate would be 18 %