Now, no PAN mandatory for purchasing jewellery worth over Rs 50,000

Now, no PAN mandatory for purchasing jewellery worth over Rs 50,000

New Delhi: In a huge relief for people ahead of the festive season, the government on Friday suspended GST notification on gems and jewellery stating that PAN card will no longer be compulsory for the purchase of jewellery for over Rs 50,000, according to an Economic Times report.

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The decision was taken at the 22nd GST Council meeting, which was chaired by Union Finance Minister Arun Jaitley in New Delhi.

The Centre has temporarily withdrawn a notification issued in August that made it mandatory for jewellers to ask for KYC documents for such purchases

Dealers in precious metals, precious stones and other high-value goods that have a turnover of Rs 2 crore or more in a financial year will not be covered under PMLA (Prevention of Money Laundering Act, 2002).

Under the PMLA, every reporting entity is required to maintain a record of all transactions of value exceeding Rs 10 lakh, all cross-border wire transfers of more than Rs 5 lakh and all purchase and sale of immovable property of Rs 50 lakh or more.

The government rolled back August 23 notification that notified dealers in precious metals, precious stones and other high-value goods as persons carrying on designated business and professions under the Prevention of Money Laundering Act, 2002.

“After considering various aspects of the issue, the government has decided to rescind the said notification. A separate notification after due consideration of points raised and wider stakeholder consultation in this regard shall be issued separately,” it said in a statement.

Revenue Secretary Hasmukh Adhia said that there was a lot of misunderstanding about the notification and so that there is no panic in the market the government has decided to withdraw the notification.

Under PMLA, all reporting entities, like banks, are required to report cash deposits over Rs 50,000.

Meanwhile, tax experts believe the move would help in pre-Diwali sales.

“The 30% year-on-year growth that our company and the organised sector witnessed in the fiscal quarter ended June was impacted slightly, down around 5% in the second quarter, by the extension of PMLA to the gems and jewellery trade on August 23,” Balram Garg, managing director, PC Jewellers was quoted as saying from the ET.

Source by timesnownews..

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