India withdrew the Integrated GST (IGST) exemption on gold, silver and platinum imports through banks and nominated agencies from 1 April, subjecting the shipments to a 3% levy. The change aimed to ensure equal tax treatment across precious metal import routes and increased working capital requirements for affected importers.
India’s Goods and Services Tax (GST) Council has withdrawn the Integrated GST (IGST) exemption on gold, silver and platinum imports through banks and nominated agencies, subjecting these imports to a 3% levy from 1 April.
The change aims to place different precious metal import routes on an equal tax footing, according to reports by Bloomberg and Moneycontrol.
Revenue Secretary Arvind Shrivastava said the government did not extend the exemption beyond 31 March and informed the Goods and Services Tax (GST) Council of the decision at its meeting in New Delhi. The Directorate General of Foreign Trade issued a new list of authorised importers on 17 April, but the tax exemption notification was not updated.
Introduced for gold in 2017 and later extended to silver and platinum, the exemption had allowed eligible importers to bring in the metals without paying IGST. Its withdrawal is expected to increase working capital requirements for affected importers.
