Home » GST » Clarification on GST published by MOF

Clarification on GSTOn 13th July, 2017 MOF (Ministry Of Finance)  issues Clarification on GST :

1. Old Gold/Jewellery :

Sale of Old gold / Jewellery by Individual to a Jeweller will not have pay GST under Reverse Charge Mechanism under Section 9(4) of CGST Act. But if an unregistered supplier/dealer of Gold ornaments sell to Registered Supplier under GST than GST on Reverse Charge Mechanism basis will apply. subject to if it is for the furtherance of business.

2. Services by Rent Welfare Association (RWA):

a. Services provided by RWA i.e. not registered corporate body or a registered non-profit entity, to its own members by way of reimbursement of charges up to Rs.5000 per month per member for providing services and goods for the common use of its members in a housing society or a residential complex are exempt from GST.
b. Threshold limit of such reimbursement charges or contribution of members is Rs. 20 lakh p.a.even if the charges per month per member is more than Rs. 5000/-.

3. Lodging or boarding by Educational Institution:

GST is fully exempted on fees/subscription charged for lodging or boarding by educational institution from students,staff,teachers.The myth that GST@18% will be levied on annual subscription/fees charged for lodging in hostels, is not true.Educational institutions which are providing pre-school education and education up to higher secondary school or equivalent or education leading to a qualification recognised by law, are fully exempt from GST.


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