Stories
Gold-Silver Prices May Soar: GST Exemption on Imports to End Before Festivals.
- •A major decision regarding gold and silver imports is expected before the festive season, directly impacting prices.
- •The GST Council may consider ending the IGST exemption on gold, silver, and platinum imports by banks and nominated agencies.
- •Currently, banks and nominated agencies are exempt from 3% IGST on importing these precious metals.
- •Ending the exemption would make gold and silver imports more expensive, leading to a jump in retail prices.
- •The government had previously increased import duties on gold and silver to curb non-essential imports.
Key Questions Answered
The GST Council may consider withdrawing the 3 percent integrated GST (IGST) exemption on the import of gold, silver, and platinum by banks and nominated agencies during its meeting on October 7. This exemption was originally granted in 2017 to facilitate trade under strict controls.
The tax exemption was given in 2017 by the GST Council to facilitate trade when imports were strictly controlled. This exemption allowed banks and government-nominated agencies to import gold, silver, and platinum without paying the 3 percent IGST.
Market experts state that ending the 3 percent tax exemption will directly increase the price of gold entering the domestic market by three percent, ultimately affecting retail consumers. However, it aims to curb non-essential imports and reduce pressure on the country's declining foreign exchange reserves.
