Jewellery business dealer gold ornaments and silver ornaments closing stock value calculation market rate or purchase cost rate or any other rate for it and gst purpose?
You can use FIFO method (Actual Cost method) or Lower of cost or market value. However, the method you follow should consistent and should be disclosed in report/ITR/3CD.
Valuation gets tricky when gold prices swing every day—does the method assume a fixed rate on the valuation date? If it sticks to historical cost, real profit margins might be skewed for GST purposes. Curious how you’d recommend handling that gap in practice.
<a href="https://nano-banana2.com/
">nano-banana2</a>
I’ve seen jewellers in my circle value closing stock at the market rate on the last day of the year, but that clashes with the original purchase invoice when prices drop. Not sure how the GST officer reconciles that difference during assessment. Has anyone actually dealt with this mismatch?
<a href="https://seedance2-5.org/
">seedance2-5</a>
The whole cost-versus-market-value question gets trickier when gold prices swing so much. If a jeweller buys at a high rate and stock is still unsold when prices drop, can they legally adopt the lower valuation for GST? Would that create an input tax credit mismatch?
<a href="https://nano-bananapro.com/
">nano-bananapro</a>
JOIN LARGEST DISCUSSION PLATFORM
Sign up to discuss taxation, accounting and finance topics with experts from all over India.
Join Discussion
