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GST Council to End Gold, Silver Import Tax Exemption for Banks
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CNBC TV18•05-10-2026, 07:40
GST Council to End Gold, Silver Import Tax Exemption for Banks
- •The GST Council is set to consider withdrawing the IGST exemption on gold, silver, and platinum imports by banks and nominated agencies.
- •Currently, a 3% IGST applies to these imports, but banks and government-listed agencies are exempt.
- •The exemption, granted in 2017, aimed to facilitate trade but will be reviewed on October 7.
- •Withdrawal of the exemption would put bullion exchanges and these agencies on equal tax footing.
- •India, the world's second-largest gold consumer, faces concerns over foreign currency outflow due to precious metal imports.
Key Questions Answered
The GST Council is likely to consider withdrawing the Integrated GST (IGST) exemption currently given to banks and nominated agencies on imports of gold, silver, and platinum.
The Goods and Services Tax exemption on gold, silver, and platinum imports was given in 2017 to facilitate trade when imports were tightly canalised.
Precious metal imports cause an outflow of foreign currency and dent India's forex reserves, leading the government to curb non-essential purchases amid pressure on the rupee.
