GST state-centre panel proposes 3% IGST on gold, silver and platinum imports by banks

The GST Fitment Committee has recommended withdrawing the IGST exemption available to banks and nominated agencies on imports of gold, silver and platinum, a move that would bring such imports under a 3% IGST levy.

The exemption was introduced for gold in 2017, following a recommendation of the GST Council, as a trade facilitation measure for banks and nominated agencies importing the precious metals. It was subsequently extended to imports of silver and platinum.

At present, the import of gold is a restricted activity and is permitted through specified channels, including banks and nominated agencies notified by the Directorate General of Foreign Trade (DGFT), qualified jewellers through the India International Bullion Exchange (IIBX), and eligible India-UAE Tariff Rate Quota holders through IIBX.

The Fitment Committee's recommendation comes against the backdrop of a mismatch between the GST exemption notification and the latest DGFT list of eligible banks.

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The lists of banks eligible to import gold and silver were valid until March 31, 2026. DGFT issued a public notice on April 17, 2026, notifying the list of eligible banks for the period April 1, 2026 to March 31, 2029. However, the relevant GST exemption notification was not updated in line with the new DGFT list.

As a result, the IGST exemption has not been available to banks from April 1, 2026, according to the Fitment Committee document. The exemption continues to operate for nominated agencies covered under List 15, as that list is not subject to periodic renewal by DGFT.

The committee has now recommended discontinuing the IGST exemption for imports of gold, silver and platinum by banks and nominated agencies covered under Lists 13, 14 and 15. Once the exemption is withdrawn, such imports would attract 3% IGST.

However, the move does not necessarily translate into a corresponding 3% increase in the final tax cost for the eligible importers. The Fitment Committee has noted that banks and nominated agencies would be eligible to claim input tax credit on the IGST paid and utilise the credit.

The committee has also proposed consequential amendments to existing GST notifications governing supplies of gold, silver and platinum by nominated agencies under the export-linked supply scheme. It has recommended defining nominated agencies with reference to Appendix 4B of the DGFT's Handbook of Procedures, as amended from time to time.