Daily Archives: August 22, 2017

GST Treatment if gold issued to Job Worker

By | August 22, 2017

Question 8: When we issue gold as raw material to our Job Worker for Job Work and he returns that gold as finished goods,what GST treatment will be done and how to calculate the value? Answer: The job worker, if registered, would be required to pay GST at the rate of 5% on job charges… Read More »

Category: GST

Refund of Excess GST paid by Banks on Gold

By | August 22, 2017

Question 6: Banks pay provisional VAT currently at the time of delivery of gold on the basis of ongoing market prices. When customer fixes the price of metal, Banks pay actual VAT on the maturity date of the Gold Loan. Banks must be allowed to set-off the excess provisional GST paid to the government against… Read More »

Category: GST

Pay GST on Provisional Basis on lending of Gold

By | August 22, 2017

  Question 5: Banks lend gold in physical form for a period not exceeding 6 months. Banks receive interest on the gold ounces disbursed and the same is converted into Rupees after calculation of interest on the ounces and the USD/INR conversion. Will the same methodology continue in case of GST as well wherein Banks… Read More »

Category: GST

Pay 3% IGST on Import of precious metals

By | August 22, 2017

Question 2: Currently Banks do not pay any VAT on import of precious metals. Banks/nominated agencies pay only customs duty on imports. In the new regime of GST, will the Banks have to pay IGST while importing? Answer: Yes, 3% IGST is payable on all imports of precious metals in addition to the basic customs… Read More »

Category: GST

GST on advertising material to distributors

By | August 22, 2017

Question 1: Whether advertising and communication material (banners / hoardings / posters) provided to distributors would be treated as supply in the course of business by the company thereby not requiring any reversal of ITC under GST Act . Answer: (a) Where the material is provided free of cost: This would not amount to a… Read More »

Category: GST

GST on Gems & Jewellery : FAQ

By | August 22, 2017

GST on Gems & Jewellery Question 1: Whether advertising and communication material (banners / hoardings / posters) provided to distributors would be treated as supply in the course of business by the company thereby not requiring any reversal of ITC. Answer: (a) Where the material is provided free of cost: This would not amount to… Read More »