2 hrs ago

India Ends Upfront Tax Relief for Precious Metal Imports

No more tax relief for importing gold, silver and platinum: What does it mean? Will buyers pay more? · livemint.com

Banks importing gold, silver and platinum used to be able to bring them into India without paying IGST upfront.

That tax relief has ended.

Banks now have to pay a 3% tax when the shipments clear customs.

Some eligible businesses can later use tax credits to offset what they paid.

But they still need the money ready at the time of import.

This may make financing imports more expensive.

The government says the change makes tax rules more even for different ways of importing precious metals.

It does not mean jewellery or metal prices for shoppers will automatically go up by 3%.

Any effect on buyers depends on costs and prices across the supply chain.

Key facts

Tax rate: 3% Integrated Goods and Services Tax (IGST)
Metals covered: Gold, silver and platinum
Tax payment timing: Upfront, when shipments clear customs
Effective date cited: Banks have paid the tax since 1 April 2026
Previous relief: Banks and nominated agencies could import the metals without paying IGST upfront
Potential importer impact: Higher short-term cash needs and possible financing costs
Retail price effect: No automatic 3% increase; any impact depends on costs and how they are passed through

livemint.com · 2 hrs ago