Govt Removes IGST Exemption on Gold, Silver and Platinum Imports
What Happened
The government has withdrawn the IGST exemption previously available to banks and nominated agencies importing gold, silver and platinum. As a result, these imports have been subject to a 3% Integrated GST (IGST) since April 1, 2026. Revenue Secretary Arvind Shrivastava said the move was aimed at ensuring equal tax treatment across different import routes, including bullion exchanges.
Key Takeaways
The decision increases costs and working capital requirements for major bullion import channels while creating a level playing field between banks, nominated agencies and other importers. It also aligns with the government's efforts to curb precious-metal imports and reduce pressure on foreign exchange reserves.