Purchase of jewellery worth Rs 50,000 and above will not require individuals to furnish their PAN (Permanent Account Number) details. The government on Friday removed gems and jewellery dealers from the requirement of reporting transactions above Rs 50,000. It rolled back its notification dated August 23 that classified 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 (PMLA), 2002. Under PMLA, all reporting entities, like banks, are required to report cash deposits over Rs 50,000. The government said a separate notification in this regard would be issued later.
- Under PMLA, cash deposits over Rs 50,000 have to be reported
- An August rule classifying precious metals, gems under PMLA rolled back
- GST Council on Friday recommended reduction in GST for 27 items
Here are five things to know:
Under the Prevention of Money Laundering Act rules, 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 has received representations from various associations in the gems and jewellery sector with respect to certain incongruities in August 23 notification, an official order said. "After considering various aspects of the issue, the Government has decided to rescind the said notification," it said.
"A separate notification after due consideration of points raised and wider stakeholder consultation in this regard, shall be issued separately."
Revenue Secretary Hasmukh Adhia said that there was a lot of misunderstanding about the notification and so the government has decided to withdraw the notification to prevent panic in the market.
The GST Council on Friday recommended reduction in the tax rate of range of items at its 22nd meeting held in New Delhi. Finance Minister Arun Jaitley, who heads the GST Council, said after the day-long meeting, that the GST rate on many daily-use items will be reduced.