GST Council to decide on precious metals import tax exemption removal

A recommendation has been made to the GST Council to rescind exemptions on precious metals imports that have been available to select entities, sources indicated. Currently, gold, silver, and platinum imports attract a 3 percent Integrated Goods and Services Tax (IGST) under standard tariff provisions.

However, banks and government-notified agencies have been extended exemptions from this levy, allowing them to import the precious metals without incurring the standard tax burden. This preferential treatment has been in place to facilitate certain sectors' operations and strategic acquisitions.

The recommendation to revoke these exemptions now awaits the GST Council's consideration and approval. The council's decision will determine whether the tax concessions are withdrawn uniformly or modified in scope.

If approved, the change would represent a significant shift in India's precious metals import regime, potentially affecting the cost structure for authorized importers and institutional buyers. The GST Council is expected to evaluate the fiscal and sectoral implications before reaching a final determination.