The 60-second version
Section 206CN requires jewellery/bullion seller to collect TCS on sale consideration — returning NRIs operating family jewellery business must file Form 27EQ.
206CN is jewellery TCS — GST invoice and TCS challan must align on same PAN
Section 206CN applies when seller receives consideration for sale of jewellery or bullion — collect TCS at notified rate.
Returning NRIs operating family jewellery shops after overseas return must obtain buyer PAN and check 206CCA for non-filer buyers.
Gold estate lane: parent gold guide for inherited stock.
Jewellery TCS matrix
| Item | Section | Collector | Form |
|---|---|---|---|
| Jewellery | 206CN | Seller | 27EQ |
| Bullion | 206CN | Seller | 27EQ |
| Non-filer buyer | 206CCA | Higher rate | PAN check |
| Penalty | 206CA | If missed | Revise 27EQ |
206CN compliance
Sale invoice
Weight + purity.
Buyer PAN
Mandatory.
Collect TCS
Check 206CCA.
File 27EQ
Quarterly.
GST align
Match GSTR-1.
Flow
206CN kit
- TAN.
- Buyer PAN.
- Hallmark cert.
- 27EQ.
- Weighing slip.
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BIS hallmark
Hallmark mismatch can block buyer claim — keep purity certificate with invoice.
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206CN vs 194Q?
194Q is buyer TDS on goods purchase; 206CN is seller TCS on jewellery sale.
206CCA?
Higher TCS if buyer is specified non-filer.
GST?
3% GST on gold jewellery — TCS is on consideration excluding GST if charged separately.
Inherited stock?
Cost basis from inheritance — see parent gold guide.
RNOR?
TCS collection applies if you are liable collector under 206CN.
Penalty?
Section 206CA if collection missed.
Your tax year is already running.
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