a client gives his old gold jewellery to the bank.bank is a custodian of the old gold jewellery. .and client takes gold loan against keeping in safe custody his old gold jewellery as a collateral .
if client defaults and does not pay back the loan amount to the bank..as a custodian the bank auctions his gold to traders/under open bidding auction.
bank is not a seller of old gold jewellery (AS NO BANK HAS A TRADING LICENCE); nor is it allowed to trade in gold jewellery buying and selling under Reserve bank of India regulation & rules.
so banks are cheating traders by charging 3% gst on old gold jewellery being sold to the bidder in the auction.it is not allowed by bank a custodian to sell and collect gst.
PLEASE ADVICE HOW CAN WE TAKE ACTION AGAINST THE BANKERS ON THIS ISSUE.
REGARDS B K 9820020758
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even Gst helpline has not been able to resolve this query for over 2 weeks....how can a bank being a custodian only ( not holding anytrading licence) charge GST to its cleints.
Replies (14)
GST applicable on bank also.
Check whether bank has GSTIN or not
Check whether bank has GSTIN or not
on old gold there is no GST...then even a bank cannot charge any GST. ..it is illegal to collect GST on old gold jewellery .declared u/S notifications 13 July 2017.
GST will be charged only on margin.......
Bank dont have to pay at the time of purchase under RCM as per Notification but they have to pay on sale.
bankers are not allowed to buy nor sell.
as they are not traders..nor do they have any trading licence. .AS THEY ARE ONLY CUSTODIANS OF THE OLD GOLD KEPT BY THE INDIVIDUAL WITH THEM UNDER CUSTODY .RBI HAS GIVEN BANKS ONLY LICENCE TO BE CUSTODIANS OF THE COLLATERAL..not do buying and sell g of the goods kept with them.RBI IS THE REGULATOR ...SO...THIS CONCLUDED NO BANKS WILL BE ALLOWED TO DO ANY TRADING (buying nor selling)OF GOODS...the regulator is above banks ....so....Banks cannot bypass the regulator body.
as they are not traders..nor do they have any trading licence. .AS THEY ARE ONLY CUSTODIANS OF THE OLD GOLD KEPT BY THE INDIVIDUAL WITH THEM UNDER CUSTODY .RBI HAS GIVEN BANKS ONLY LICENCE TO BE CUSTODIANS OF THE COLLATERAL..not do buying and sell g of the goods kept with them.RBI IS THE REGULATOR ...SO...THIS CONCLUDED NO BANKS WILL BE ALLOWED TO DO ANY TRADING (buying nor selling)OF GOODS...the regulator is above banks ....so....Banks cannot bypass the regulator body.
Absolutely true sir
there are many remedies against bank
which u can take but brother they will be time wasting and money consuming
I totally disagree with CA Rashmi Gandhi
Want to connect with both of u to share knowledge on the said topic
Want to connect with both of u to share knowledge on the said topic
please let me know how can I connect with both of u
please let me know how can I connect with both of u
In this case bank is a bidder, so Bank has to pay GST, so on Gold Auction GST will charged to buyer of the Auction
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