GST Council May Withdraw IGST Exemption on Gold, Silver, Platinum Imports

The GST Council is likely to consider a proposal to withdraw the Integrated GST (IGST) exemption currently available to specified banks and nominated agencies on imports of gold, silver and platinum, according to sources. The proposal is part of a wider set of GST process reforms expected to come up before the Council.

IGST Exemption on Precious Metal Imports Under Review

The existing framework allows specified banks and nominated agencies to import gold, silver and platinum without paying IGST at the time of import, subject to prescribed conditions. The GST Council had earlier approved updates to the list of eligible banks and entities under the relevant customs notification. No More Arrests Under GST? Centre, States Weigh Decriminalisation Ahead of Council Meet.

The exemption was originally introduced to facilitate the availability of precious metals to exporters and the gems and jewellery sector. GST Council documents note that the mechanism was intended to avoid an upfront IGST burden on nominated importers, with taxation applying at the subsequent stage of supply.

Gold Imports Already Hit by Higher Duty

The latest proposal comes at a time when India's gold imports have already fallen sharply. A senior Finance Ministry official said in June that monthly gold imports had declined to around 25-30 tonnes from 75-100 tonnes earlier, following an increase in import duty and weaker demand. The official also said banks had not been re-notified as designated gold importers from April 1, 2026, leaving only a limited number of nominated agencies eligible to import the precious metal.

GST Council to Consider Wider Tax Reforms

The proposed withdrawal of the precious-metal IGST exemption is among several measures that the GST Council may consider as part of the GST 2.0 process reforms. Other proposals reportedly include measures to simplify GST registration and return filing, protect genuine buyers' input tax credit when suppliers default, reduce low-value litigation and streamline checks on movement of goods.

Any decision on the gold, silver and platinum exemption will depend on the GST Council's deliberations and recommendations. The proposal should therefore not be treated as a final change in the tax regime until formally approved and notified.

(The above story first appeared on LatestLY on Oct 04, 2026 08:47 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).