One of my clients is doing jobwork of refining and melting of gold , he is earning 8 to 9 lakhs yearly and doing work in local state therefore he is not liable for gst.
generally in his transaction what happen basically is that some one with raw gold comes to him for melting or refining that gold, he does melting or refining on that gold and that pure gold returned to customer and he issues his labour invoice to that cutomer for 5 rs. per gram.
Now question is that he has big furnace or called BHATHTHI to melt gold in that it requires minimum 1 or 2 kg gold to refine or melt, you can not melt small amount of gold in that.
so ease of transaction he takes/collects raw gold from his all customers for whole day and on the spot fine gold returned to his customer from his own gold stock immediately equal to purity of raw gold he received from his customer and issues labour invoice to his customer and then after at the end of the day he melted whole gold together collected during the day.
what ever gold stock he has it is his personal investment and it is shown in balance sheet as current asset.
so whether it affects gst?
CAclubindia
