GST Council may end bank import tax break on precious metals
In short
The GST Council may remove the IGST exemption for banks and nominated agencies that import gold, silver and platinum. The reports say the normal tax is 3%, but banks are currently exempt.
This could make precious-metal imports more expensive and may help reduce foreign exchange outflows. It is not stated whether the council has approved the change.
What the reporting says
The GST Council may withdraw the IGST exemption on gold, silver and platinum imports by banks and nominated agencies, according to the summaries. The reports say banks currently face a 3% IGST rate but are exempt, and that the exemption dates to 2017. The immediate consequence could be higher import costs and more pressure on foreign exchange outflows, but a final decision is not stated.
Why it matters
The GST Council is reported to be weighing removal of the IGST exemption on gold, silver and platinum imports by banks and nominated agencies. The summaries note that the exemption has existed since 2017, while the standard IGST rate is 3%. The move is being discussed in the context of curbing non-essential imports and foreign-exchange outflows, but no final decision is stated in the available reporting.