The Revenue Department clarified that no GST taxation shall cover the vehicles that are resold by their owners. Both, old jewellery and old vehicles can be let out by the owners without GST implications as it is out of the business realm the moment it goes in the hands of the buyers. The reselling of the vehicles can be for any reason, the updating technology, to get some money and cover personal losses, to buy a new one in an exchange offer or any other, the reason is not to do business in the market, therefore it shall be carried out devoid of GST.
Further, the Secretary Of the Department, Hasmukh Adhia said that a minimal 3% of taxation of reverse charge mechanism. This principle shall be carried out for both old jewellery and old vehicles in accordance with the Section 9(4) of the Central GST Act, 2017. The act clearly states that "the sale of old jewellery by an individual to a jeweller will not attract the provisions of Section 9(4) and jeweller will not be liable to pay tax under reverse charge mechanism (RCM) on such purchases, and same shall be followed for the old cars too." Also, GST shall be taxed if an unregistered customer is selling the commodity to a registered customer.
