Tax on Old Gold

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sheik javid

student

174 Points Posted on 09 June 2023

I am registered jeweller purchased gold from various customers. How can I record this in gst / shall I registered this as unregistered purchase?

Replies (3)

Quick Summary

Registered jewellers in India need to correctly record gold purchased from customers for GST purposes. If you're GST registered and exceed the turnover threshold, purchases from customers should generally be treated as registered purchases, requiring a tax invoice and proper record-keeping. You may be able to claim Input Tax Credit (ITC) on GST paid. If the supplier is unregistered, you might issue a self-tax invoice for inward supply, but RCM (Reverse Charge Mechanism) may not apply depending on specific notifications and your business type.

Pranjal Gupta

116 Points Posted on 09 June 2023

When it comes to recording gold purchases for GST (Goods and Services Tax) in India, there are certain guidelines to follow. Here are a few points to consider:

GST Registration: If your annual turnover exceeds the threshold specified by the GST authorities, you should register for GST. Registration is mandatory for businesses meeting the turnover criteria.
Registered Purchases: If you are a registered GST dealer, you should record the gold purchases from various customers as registered purchases. This means you need to issue a tax invoice for each purchase, maintain proper records, and report them in your GST returns accordingly. The tax collected on these purchases will be deposited with the government.
Input Tax Credit (ITC): As a registered dealer, you can claim input tax credit for the GST paid on your purchases. This allows you to offset the tax you paid while buying gold against the tax you collect on sales. Make sure you comply with the necessary documentation and reporting requirements to claim the ITC.

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Imthias ahamed Kormath

635 Points Posted on 09 June 2023

You may issue purchase invoice.
GST on purchase value paid to Govt account as deposit in the cash ledger on RCM basic.
while you supplied to other registered dealer,u may claim ITC
If any margin between purchase market value and sales market value.you paid gst on which margine @ proposed gst rate.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 10 June 2023

In term of Rule 46 you can raise Self Tax Invoice for all the Inward supply from Unregistered person .
As RCM under Section 9(4) is applicable on class of Registered person & on specified Goods as mentioned in Notification 7/2019 CT rate & you do not cover under same .
Thus the same exempted supply.