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Gst implication on an auction sale & scrap sale

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karthikn raju

Student CA Final

45 Points Posted on 21 June 2017

I have a doubt.. my client runs mutual fund business. He lends loan to customers by acquiring jewels from them on pledge. Later in case of defaulters they are selling the pledged jewels as an auction sale. So in this case whether such auction sale attracts GST ? If yes what rate ?

Also I want to know GST implication on Scrap sales of P&M, Generators,Comp.Accessories, Weighing balance device, Old records.

Thanks in advance

Replies (2)

Auctions Gold

31 Points Posted on 20 July 2017

hello karthikin raju... banks and nbfc are only custodian of old gold jewellery. .so the are not allowed to trade in it..they can auction on as is where is basis ...only..and make bidders bill as old gold jewellery. no gst must be charged....as custodians are not allowed to trade in sale or buying of gold jewellery by RBI.if they charge they will have to payback the gst to their clients with penalty and interest by law.

RATANSINGH TANWAR

PRACTICE

107 Points Posted on 05 January 2018

hi everyone

one of my client is govt entity excise department have seized motor vehicles. seized while these were using in smuggling activities now department is going to sale these vehicle through auction what will be the GST implication on these activites