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Central Government Announces New Tax on Gold and Silver Imports
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News18•09-10-2026, 08:40
Central Government Announces New Tax on Gold and Silver Imports
- •Starting April 1, 2026, a 3% Integrated Goods and Services Tax will apply to gold, silver, and platinum imported through banks and nominated agencies.
- •The government has decided not to extend previous tax exemptions for certain entities to ensure a uniform tax system and eliminate import disparities.
- •India is the world's second-largest consumer of gold after China, with rising domestic demand significantly increasing the import bill and pressure on foreign exchange.
- •Prime Minister Narendra Modi has appealed to citizens to reduce gold purchases to maintain economic stability amidst surging import costs.
Key Questions Answered
Starting April 1, 2026, a 3% Integrated Goods and Services Tax (IGST) applies to precious metals like gold, silver, and platinum imported through banks and government-recognized nominated agencies.
Revenue Secretary Arvind Srivastava announced that previous tax exemptions for certain banks and nominated agencies would no longer continue after March 31, 2026.
During the April-August period of the 2026-27 financial year, gold imports increased by 3.38% to reach $17.47 billion, while silver imports dropped by 8.81% to $1.74 billion.
