GST issue sorted out for tea auction

TIL Desk/Business/Kolkata/ With GST coming into place from July one, tea traders, brokers along with Tea Board and tax commissioners have sorted out the billing issue on how to impose the new tax during auctions.

“The billing issue relating to imposition of GST at the auction houses has been sorted out”, secretary of Calcutta Tea Traders Association (CTTA) Kalyan Sundaram told. Sundaram said that auction (sale number 27) in Calcutta will start today from 2pm and continue till Saturday lunch time.

This sale was supposed to be held on Tuesday and Wednesday, but was postponed due to the billing issue on how to raise GST (both CGST and SGST) invoice after auction is complete. According to him, it had been decided that once tea is sold at the auctions, the producers would raise a tax invoice to the broker. This tax invoice would comprise 2.5 per cent SGST and 2.5 per cent CGST.

Unless this was done, then buyers, sellers and brokers would not be able to avail of input tax credit. Auctions and Guwahati and Siliguri had started from 9 am today, he said, adding that at Coonoor it was also being held today. Auction at Coimbatore would start later, he said.