GST on 999 silver granules???

[billybob888]

I was interested in the 999 silver granules, is there a reason why granules should be treated different to coins and bars when it comes to GST? :/
http://www.perthbullion.com/shop/detail/silvershotk1/

 

[Monsta]

I believe it needs to be stamped with purity in order for GST not to apply. Since the granules are so small, that isn't possible.

Also, I believe the GST legislation states it needs to be in 'investment' form, which means bars or some sport of minted form - minted bars, rounds. Shot/Granule does not meet this requirement either.

 

[SpacePete]

I believe it needs to be stamped with purity in order for GST not to apply. Since the granules are so small, that isn't possible.

Also, I believe the GST legislation states it needs to be in 'investment' form, which means bars or some sport of minted form - minted bars, rounds. Shot/Granule does not meet this requirement either.

What would silver granules typically be used for? Jewelery manufacturing? In that case would they get GST credits?

 

[Miloman]

I believe it needs to be stamped with purity in order for GST not to apply. Since the granules are so small, that isn't possible.

Also, I believe the GST legislation states it needs to be in 'investment' form, which means bars or some sport of minted form - minted bars, rounds. Shot/Granule does not meet this requirement either.

What would silver granules typically be used for? Jewelery manufacturing? In that case would they get GST credits?

Yes granules are for jewellery and fabrication.

And yes they get credits.

 

[sammysilver]

Could the silver granules be used in an air gun. If so, would it be acceptable in killing baby vampires?

 

[HudsonDesign]

Could the silver granules be used in an air gun. If so, would it be acceptable in killing baby vampires?

If your up to it you can also make your own shotgun shells like that

 

[Currawong]

Be interesting to see the penetration of silver shot vs standard shot.

 

[GoldenEye]

Be interesting to see the penetration of silver shot vs standard shot.

And the burning effect on those vampires.

 

[Ronnie 666]

Be interesting to see the penetration of silver shot vs standard shot.

Probably not as good as silver is 10% lighter per standard volume. At close range it will make no difference.

 

[Golden ChipMunk]

Be interesting to see the penetration of silver shot vs standard shot.

Probably not as good as silver is 10% lighter per standard volume. At close range it will make no difference.

Can make metal balls coated with silver, to compensate for the weight.
Killing those Vampires does not require 99.99%
They don't carry XRF with them

 

[iceblue]

I believe it needs to be stamped with purity in order for GST not to apply. Since the granules are so small, that isn't possible.

Also, I believe the GST legislation states it needs to be in 'investment' form, which means bars or some sport of minted form - minted bars, rounds. Shot/Granule does not meet this requirement either.

Correct and will expand on this.
To be GST free investment form of silver requires also a legitimate mark, eg mintmark. Mintmarks for GST free status is at the discretion of the tax commissioner, these can be obtained in a method I wont go into now. Silver in Australia needs a recognized mint mark to obtain GST free status. This is the reason we mint with SBA and not bang out our own.
Small home refiners need to be careful with this, if the tax office comes calling you will have some explaining to do!
It also needs to be sold at a price in reference to spot.
It also needs to be readily available for investment eg - 100oz is not readily available to investors.
GP knows heaps more about it, he may be able to add to this.
All rounds in Australia imported or local need purity,weight and mintmark. The recent 2015 pandas caused a stir as they were missing some of these crucial marks but I believe they were given GST free status as they were a recognized product, again GP knows more about this!

 

[Gatito Bandito]

What would silver granules typically be used for? Jewelery manufacturing? In that case would they get GST credits?

One of my favorite unboxing vids.. :lol:


https://www.youtube.com/watch?v=3kadDWOs75U

[youtube]http://www.youtube.com/watch?v=3kadDWOs75U[/youtube]

 

[SpacePete]

What would silver granules typically be used for? Jewelery manufacturing? In that case would they get GST credits?

One of my favorite unboxing vids.. :lol:


https://www.youtube.com/watch?v=3kadDWOs75U

I was getting worried when he got to the inner bags... was imagining what would happen if he accidentally cut the inner bag and several kilos of silver shot spilled all over the floor!

 

[goldpelican]

Bears an accepted mark or characteristic

23. To be tradeable on the international bullion market, the metal must bear some mark or characteristic on its face accepted by the market as identifying and guaranteeing its fineness and quality. An example of a mark is a hallmark used on bars. An example of a characteristic is the characteristic pattern or design and noted weight and fineness found on a bullion coin that identifies the coin as issued, backed and guaranteed as to fineness by a government.

24. For example, granules do not bear any mark as to their fineness and quality and are therefore not in an investment form. On the other hand, gold bars bearing an internationally accepted hallmark, including hallmarks listed in the Industry Catalogue of Gold Bars Worldwide (ICGB), do bear such a mark and are therefore instantly accepted on the international bullion market as to their guaranteed fineness and quality.

Not necessarily a mintmark, but an "accepted mark or characteristic". Mintmarks can also be applied to GST items, e.g. a proof coin, but that fails other characteristic tests resulting in GST. The above link talks about "internationally acceptable", but I believe there's been subsequent media issued that recognises that some brands are only nationally recognised, not internationally, and that is still acceptable. Can't lay my hands on the reference at the moment however. A lot of the legislation and rulings read as if they were specific to the Perth Mint, who I believe were consulted during the formulation of the main ruling on the matter, so that's not a surprise.

Back to granules, they do not bear a mark or characteristic that guarantees their fineness. They could be sterling granules and you wouldn't be able to tell. On other hand if someone put out a 925 bar and stamped it 999, that would be simple fraud if they sold it as 999, so the law is based on the expectation that marks are truthful.