GST on Advance Payments

When you engage in purchasing Green Cardamom for future trade or investment (Advance Purchase for Stock) through our platform, the transaction is initially treated as an advance payment. This is a common practice in the commodity trading market, where buyers prefer to hold stock and wait for favorable market conditions before finalizing the purchase.

Advance Payment and Receipt

Upon making an advance payment for the desired quantity of Green Cardamom, you will receive an Advance Payment Receipt. This is not a final invoice because the transaction is considered incomplete until you choose to either take delivery of the commodity or decide to sell it at a later stage. The advance payment receipt serves as documentation of the amount paid and secures your cardamom stock within our processing and warehousing system.

It’s important to note that during this phase, GST (Goods and Services Tax) is not applied yet, as the sale is not completed. Instead, the transaction is categorized under Advance Payment in compliance with Indian GST regulations.

Decision to Sell or Recall Stock (Asset Recall)

When you’re ready to either sell the cardamom or physically recall the stock, you notify us through the platform. This process, known as Asset Recall, initiates the final steps of your transaction. At this point, we will issue a GST invoice based on the applicable price at the time of the sale or stock recall.

• GST & Other Charges: a 5% GST will be added to the final value of the commodity, and (If the total sale value for this customer exceeds ₹50 lakhs in the current financial year, it becomes mandatory to collect Tax Collected at Source (TCS) on nvoice, in accordance with the new provisions under Section 206C(1H) of the Income Tax Act. TCS is levied at 0.1% on the amount exceeding ₹50 lakhs and is applicable on the sale of goods) along with any applicable taxes and transportation charges. The transportation costs vary depending on the location and delivery method chosen but are transparently included in the final GST invoice.

Packaging and Delivery

Your investment includes packaging of the Cardamom in a standard process. This process ensures that your commodity is stored and delivered in optimal condition. Here’s how the packaging works:

1. 1kg plastic packets: The cardamom is initially packed in small 1kg plastic packets, which ensures freshness aroma lock.
2. 10kg bags: These smaller packets are then placed in 10kg bags for efficient bulk handling.
3. 50kg master packing: Finally, the 10kg bags are consolidated into 50kg master bags for transportation.

Packaging process is included in the price and guarantees that the cardamom is kept safe from environmental factors during storage and transit.

GST Invoice & Input Tax Credit (ITC)

Once the final sale or delivery is confirmed, we issue the GST invoice. If you have a GST registration number, you should provide it at this point to claim Input Tax Credit (ITC) on the transaction.

Please Contact Us for any clarifications