India Ends Upfront Tax Relief for Precious Metal Imports

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.