Stories
Gold Silver Prices to Surge Before Diwali? October 7 GST Decision to Reshape Market Dynamics!
- •Gold and silver prices saw significant fluctuations recently, with a decline of approximately 3500 rupees for gold and 5000 rupees for silver last week.
- •The GST Council is considering revoking the GST exemption on gold and silver imports, which could lead to a price increase.
- •A proposal has been placed before the council to withdraw the integrated GST (IGST) exemption on imports of gold, silver, and platinum by banks and authorized agencies.
- •Currently, banks and authorized agencies receive a full exemption from the 3% IGST on these imports, granted in 2017 to facilitate trade.
- •This crucial issue will be discussed at the GST Council meeting on October 7, and if approved, it will make imports more expensive and likely increase retail prices.
Key Questions Answered
The GST Council is considering a proposal to revoke the integrated GST (IGST) exemption on imports of gold, silver, and platinum by banks and authorized agencies. Removing this 3% tax exemption would make precious metal imports more expensive and equalize the tax structure for all bullion traders.
Banks and reputable government-listed agencies received a full exemption from the 3% IGST on precious metal imports when it was originally granted in 2017 specifically to facilitate trade.
The government previously raised effective import duties to 15% via a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess, and Prime Minister Narendra Modi appealed to the public to avoid buying gold to help reduce pressure on foreign exchange reserves.
