GST for Gold trading could be different

Under normal circumstances, GST is to be accounted for at the earliest of the following events:-

• date when goods are delivered or made available to your customer;
• date when payment is received; or
• date of issuance of invoice.

But when it comes to trading of gold where the prices are dependent on fluctuations in the market for a period of 90 days.

The law allows that the invoice to be issued on the 90th day with the price determined by (assuming the seller has not received any payment),

• buyer/seller; or
• otherwise based on the open market value prevailing on that day.

This method of accounting is only peculier to sales of gold jewellery.