India’s GST Council is weighing a proposal that could revoke a key tax exemption for banks and nominated agencies importing gold, silver, and platinum, signalling a shift in trade and tax policy amid efforts to restrict non-essential imports.
India’s GST Council is expected to weigh a proposal on October 7 that could end the Integrated GST exemption now granted to banks and nominated agencies when they bring in gold, silver and platinum, according to reports in Kashmir Reader and The Economic Times. At present, those imports normally attract 3% IGST, but the levy is waived when the metals are brought in by entities officially designated by the government. The possible change would reverse a concession introduced in 2017.
The move is being framed as part of a wider effort to curb non-essential imports and slow foreign-exchange outflows, The Economic Times reported. Precious metals remain an important but sensitive import category for India, which has periodically tightened or clarified rules around who may handle duty-free or tax-exempt shipments. Rediff Moneynews said the proposed withdrawal is also aimed at levelling the tax treatment of market participants more broadly.
The latest discussion comes only months after the indirect tax regime for precious metals was updated again. In November 2025, the Central Board of Indirect Taxes and Customs revised the definition of “nominated agency” for imports of gold, silver and platinum, with new lists of eligible banks and other entities taking effect from November 1, 2025, according to tax advisory reports from A2Z Taxcorp and TaxMann India. Those changes were intended to clarify which institutions could use the exemption and to make compliance more straightforward.
If the Council agrees to withdraw the concession, it would mark another shift in a tax framework that has been repeatedly adjusted to balance trade facilitation, industry needs and currency management. For jewellers and bullion traders, the details matter because even small changes in IGST treatment can affect import costs, pricing and working capital across the supply chain.
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