GST Council May Scrap IGST Exemption on Gold, Silver, Platinum Imports by Banks, Nominated Agencies

New Delhi, Oct 5 (KNN) The GST Council is likely to consider withdrawing the Integrated GST (IGST) exemption on gold, silver and platinum imports by banks and nominated agencies at its October 7 meeting, sources said.

Currently, imports of gold, silver and platinum attract 3 per cent IGST. However, the levy is exempted when the precious metals are imported by banks and government-nominated agencies, which are periodically notified.

The exemption was introduced in 2017 when precious metal imports were tightly canalised to facilitate trade. Its withdrawal would bring banks and nominated agencies on a par with bullion exchanges in terms of taxation, sources said, PTI reported.

Precious metal imports have remained a concern for the government due to their impact on foreign exchange outflows. India is the world's second-largest gold consumer after China, with jewellery demand being the primary driver of gold imports.

In May, the government raised the import duty on gold and silver to 15 per cent from 6 per cent, while the duty on platinum was increased to 15.4 per cent from 6.4 per cent, in a bid to curb non-essential imports.

Prime Minister Narendra Modi has also urged people to avoid gold purchases amid pressure on the rupee and rising import bills following the Iran-US-Israel conflict.

Gold imports rose 3.38 per cent year-on-year to USD 17.47 billion during April-August 2026-27, while silver imports declined 8.81 per cent to USD 1.74 billion.

(KNN Bureau)