GST Rules for Bullion Merchant Stock keeping & cash

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 25 November 2022

There is no issue for cash sales less than ₹50000. Although bullion being high value item PAN wise details must be maintained for each sale because the industry is regulated by RBI and incase bullion was imported then also by customs. Even anti money laundering agencies also monitor the transactions.
But as far as GST is considered no issues.

Cash found different from books is a prima facie indicator that fake invoicing is being done. You will have to prove that fake invoicing was not done. It the difference in cash will have to be explained.

Same case with stock difference from books.

1 Like

Abhishek (NIL) (159 Points)
Replied 25 November 2022

You did not got my point, from last 1 year there is no transaction in firm as due to financial problem in family, and in bullion its not possible for make every person entry in tally and that is not possible for a normal person to do so and in tally by default cash bill is generated and for 100- 300gm silver which value is around 20000 its not mentioned, in firm books there is an cash of 3 lakhs which is not an huge amount but the officer asking why cash is not present in the permises it should be kept in the permises why there is less amount, and in firm stock its 10kg silver but in physical it was 4-5 kg as rest was in his home as due to family issue of separation in brothers, but the officers is harassing him.

So, if anyone can tell me any rulea or clause for the same then it would be helpful.

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 25 November 2022

First get clarity yourself. In first post you said there are daily cash transactions then in second post you say that there are no transaction since 1 year???...

It's very much possible to record every transaction in bullion as I myself have clients dealing in this sector. You just need to employ accountants for that.

Cash not available in the business premises is no issue as no where it is mentioned in GST law it has to be maintained then and there only. At most you could have shown as drawings in your accounts

As far as stock is concerned all stock mentioned in books must be present at place of business otherwise it will be considered that those goods have been sold without invoice. You need to provide proper evidence of the facts you are mentioning.

Abhishek (NIL) (159 Points)
Replied 25 November 2022

Yes, till last year there was transactions of everyday from from 1 year there is no transactions even the shop is not getting open all days 1-2 times in a month for cleaning and checkup, but the officer calls him to open the shop whenever he is around there and harassing, if he is not opening the shop then why the officer is getting it open and checking his stock and cash.

And I am not able to get any rules or guidelines to send any report against him.

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 25 November 2022

Are you registered under GST right now or the registration has been cancelled?

1 Like

Abhishek (NIL) (159 Points)
Replied 25 November 2022

Registered under gst right now, nil return is being filled.

Abhishek (NIL) (159 Points)
Replied 25 November 2022

Registered under gst right now, nil return is being filled.

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 25 November 2022

The jurisdiction officer has the power to visit the premises mentioned in the gst registration profile during business hour.

Abhishek (NIL) (159 Points)
Replied 25 November 2022

I know they have power but when the shop is close, then why they are forcing to open it to check... its misusing the power and harassing,

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 25 November 2022

Legally the business is not closed as the gst registration is still active. You will have to get the registration cancelled.

Meanwhile you will have to give valid reasons for non availability of stock at premises.

Abhishek (NIL) (159 Points)
Replied 25 November 2022

I do understand what you are saying, but I think you did not got what I said,

The shop is close currently and the officer is asking to open the shop when ever he is visiting the area is that correct as I have never seen any GST officer to open an close shop for checking and that to frequently in gap of 7-10 days and the officer has visited 3-4 times till now, and everytime the owner was in his home and shop was close he has to come from home to open the shop for him

kl Bhavana (Student CA Final ) (417 Points)
Replied 27 November 2022

Hi Abhishek,

If the shopkeeper is not willing to continue business then it is advisable to cancel GST registration. If registration is not there officer will have no power to visit.

If he is willing to continue business then stock needs to be maintained properly matching books and returns. As per section 71 of CGST Act, 2017 the officer has authority to visit the premises for scrutiny whenever required.

You may request time to submit the documents with the department. Also, for the last year i.e., 2021-22 has the income tax returns filed?

Please write mail at Bhavana @ lbkca.in, we can discuss further.

Thanks,
Bhavana K L
Chartered Accountant

Abhishek (NIL) (159 Points)
Replied 27 November 2022

Hello Bhavana, owner will continue the business but as there is some dispute in family and there is some separation going on so he is unable to open the shop currently, but there is an officer who is greedy and he is harnessing many shopkeepers there, and even the owner has said if there is any fine or notice the he will reply on it but the officer is only harnessing him from 1 month whenever he calls him to open the shop to check which I have never seen yet. And if there is any fine also the the total value wil be about 3lkh of the goods and tax is 3% it will be 9000+penalty+interest what will not even cross 10% of the gooda value that officer also know but he is only doing for his own reason.

Owner returns are upto date Gst and Income tax both.

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 27 November 2022

Then you should altogether ignore his calls. Let him issue notice and you can reply accordingly.

The only issue is if your shop is the principal place of supply then the officer can choose to send notice to that address and there might be no one to receive it.

The second thing he can do is that he can proceed for cancellation of registration if nil return is filed for more than 6 months and if he finds no one at the principal place of business.