TMI BlogFAQ for GST on Gems & Jewellery dated 18-08-2017X X X X Extracts X X X X X X X X Extracts X X X X ..... vided free of cost : This would not amount to a supply and hence no tax is payable on such transaction and in such a case credit availed by the company would need to be reversed in accordance with section 17(5) of the CGST Act, 2017. (b) Where the material is provided for a consideration : This would amount to a normal supply. Question 2 : Currently Banks do not p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng into India of any goods from any place outside India is an import of the goods. What is material in this definition is the mere act of bringing into India; the ownership is not material for determining whether an import has taken place. Banks, being registered entities, would be liable to pay IGST on such imports but not the overseas entities since they are not effecting the import. Questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... avail of the benefit of provisional assessment provided under section 60 of the CGST Act, 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 gover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le at the rate of 3% of the total transaction value of jewellery, whether the making charge is shown separately or not. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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