India ends IGST tax exemption for gold and silver imports

The Indian government has ended the advance Integrated Goods and Services Tax (IGST) exemption for the import of precious metals, including gold, silver, and platinum. Previously, banks and authorized agencies were permitted to import these metals without making an upfront IGST payment.

Under the new regulations, importers must now pay a 3 percent IGST at the time of customs clearance. According to Revenue Secretary Arvind Srivastava, banks have been paying this tax since April 1, 2026. The decision, which was communicated to the GST Council on October 8, aims to create a level playing field by ensuring tax uniformity across different methods of precious metal importation.

While the change may impact the cash flow of banks and importers, it does not automatically translate to a 3 percent increase in market prices. Final consumer costs will depend on import costs, international market trends, and trader responses.