reverse charge on purchase of old gold by a registered jeweller

Yes same is applicable

Composition scheme is not advisable for Sarrafa dealers who purchase from unregistered dealer.

Because they have to purchase after paying @ 3% under RCM for which no credit available.

Also on sale they have to pay @ 1% on sales which would not be collected from customer .

So they have to pay 4% aggregate.

if a bank has given loan against gold jewellery kept by an individual as a collateral in the bank and individual has taken loan .if he defaults the loan and does not payback on time to the bank... bank announces to auction this jewellery.i go and buy the jewellery as I am a regd gst jewellery buyer/seller/trader. if I receive the gold jewellery in the auction upon sucessful bidding will the bank charge gst on selling the jewellery in auction?or it is not a business of the bank to trade..so cannot charge gst. ..pls advice.

If an individual keeps as collateral in bank and takes gold loan. He then defaults ..so the bank decides to auction the gold. As bank is not allowed to trade ..then how can bank charge gst?.upon handing over old gold to the bidder...an individual or a jeweller.pls advice..how will bank make invoice of sale.with gst or without gst.

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.

please clarify CA.RASHMI GANDHI medam,

Please clarify CA RASHMI GANDHI Medam to the following question: our cleint is a merchant selling gold ornaments. He is in composite scheme under GST regime. He purchases old gold from customers and gives new ornaments and some times adds some gold in process of selling new ornament. what is his tax liability?