The Indian government has withdrawn the Integrated Goods and Services Tax (IGST) exemption previously available to banks importing gold, silver and platinum, bringing these imports under the 3% tax levy from April 1, 2026.

The government informed the Goods and Services Tax (GST) Council about the decision on October 8, Revenue Secretary Arvind Shrivastava said. The exemption, which was not extended beyond March 31, 2026, had allowed banks to import precious metals without paying IGST.

The move aims to ensure parity in the tax treatment of precious metals imported through different channels. “This is done to ensure parity of taxes imposed on imports of gold and other metals through different routes,” Shrivastava said.

The exemption was introduced for gold imports in 2017 and subsequently extended to silver and platinum. It was intended to facilitate bullion imports through authorised banks and nominated agencies.

The change affects a key supply channel for India’s bullion market, where banks and nominated agencies play an important role in importing precious metals for domestic consumption and jewellery manufacturing.

The withdrawal changes the tax treatment of bank-imported bullion, although its impact on jewellery prices will depend on how the additional tax affects costs across the supply chain and the availability of input tax credits.

The Indian government has withdrawn the Integrated Goods and Services Tax (IGST) exemption previously available to banks importing gold, silver and platinum, bringing these imports under the 3% tax levy from April 1, 2026.

The government informed the Goods and Services Tax (GST) Council about the decision on October 8, Revenue Secretary Arvind Shrivastava said. The exemption, which was not extended beyond March 31, 2026, had allowed banks to import precious metals without paying IGST.

The move aims to ensure parity in the tax treatment of precious metals imported through different channels. “This is done to ensure parity of taxes imposed on imports of gold and other metals through different routes,” Shrivastava said.

The exemption was introduced for gold imports in 2017 and subsequently extended to silver and platinum. It was intended to facilitate bullion imports through authorised banks and nominated agencies.

The change affects a key supply channel for India’s bullion market, where banks and nominated agencies play an important role in importing precious metals for domestic consumption and jewellery manufacturing.

The withdrawal changes the tax treatment of bank-imported bullion, although its impact on jewellery prices will depend on how the additional tax affects costs across the supply chain and the availability of input tax credits.