- What's proposed
- Withdraw IGST exemption on bullion imports
- Who's affected
- Banks & nominated agencies
- The tax
- 3% IGST on gold, silver, platinum
- Forum
- GST Council, 7 October 2026
Please note — this is a developing proposal
As reported, the GST Council is likely to consider withdrawing this exemption at its 7 October 2026 meeting. Nothing has been decided or notified. The exemption remains in force until the Council approves a change and it is given effect. Treat this as the likely agenda, not the law today.
The short version
- The GST Council may withdraw the IGST exemption on imports of gold, silver and platinum by banks and nominated agencies.
- These metals normally attract 3% IGST on import; banks and government-notified agencies have been exempt since 2017.
- The stated aim is to put bullion exchanges and these agencies on the same footing — the 2017 exemption was given when the trade was tightly canalised.
- It fits a broader push to curb precious-metal imports, which strain the rupee and forex reserves — import duty on gold and silver was already hiked to 15% earlier this year.
A tax break that has sat quietly in the bullion trade since the first days of GST may be about to end. At its 7 October 2026 meeting, the GST Council is reported to be considering the withdrawal of the IGST exemption that lets banks and nominated agencies import gold, silver and platinum tax-free.
What the exemption is
Imports of gold, silver and platinum ordinarily attract 3% Integrated GST (IGST). But when these precious metals are imported by banks and nominated agencies — a list the government updates periodically — that IGST has been exempt. The relief dates to 2017, granted to facilitate a bullion trade that was then tightly canalised through a limited set of approved channels.
What's proposed, and why
The proposal before the Council is to withdraw that 2017 exemption. According to sources, the rationale is parity: once the exemption goes, bullion exchanges and these agencies would be on the same footing in terms of taxation, rather than one route carrying an advantage the other does not.
The bigger picture: reining in bullion imports
Precious-metal imports have been a persistent worry for the government — they drain foreign currency and weigh on India's forex reserves. India is the world's second-largest gold consumer after China, with imports driven largely by jewellery demand. In May, the government raised import duty on gold and silver to 15% (from 6%) and on platinum to 15.4% (from 6.4%) to curb non-essential imports, and the Prime Minister has publicly urged restraint on gold buying amid pressure on the rupee from a higher import bill.
The import trend
Gold imports still rose modestly in the first five months of the fiscal year even after the duty hike, while silver imports fell. Removing the IGST exemption would add another layer of cost at the import stage for the banks and agencies that currently enjoy it — reinforcing the same policy direction as the duty increases.
Who should pay attention
- Banks and nominated agencies importing bullion — the direct cost of importing gold, silver and platinum would rise if the exemption goes.
- Bullion dealers and jewellers sourcing through these channels — import-stage tax changes can feed through to landed cost.
- Businesses in the gold-loan and bullion-trading space — pricing, margins and working-capital planning may need a relook.
A note on how IGST at import works
IGST paid on imported goods is generally available as input tax credit to a registered importer, subject to the usual conditions. So for a registered business, the withdrawal may shift timing and cash flow at the import stage rather than always being a pure added cost — the exact impact depends on the entity, its registration and how the metal is subsequently used or sold. The final effect will only be clear once the change, if approved, is notified with its conditions.
In the bullion or gold-loan business?
efiletax can help you assess the GST and import-tax impact on your sourcing, pricing and credit position — and keep you compliant as the rules shift.
Talk to our GST teamDisclaimer: This article summarises a developing proposal based on news reports (The Hindu Business Line, 5 October 2026) and is current as at the date of publication. No change to the IGST exemption on bullion imports has been approved or notified; the existing exemption continues until amended. Figures, dates and outcomes may change after the GST Council meeting. This is not legal or tax advice — please consult a qualified professional. Talk to efiletax if you need help.