India Cancels Preferential Tax Benefits for Banks and Designated Institutions on Import of Precious Metals; 3% Tax Imposed on Gold, Silver, and Platinum Imports

智通财经2026/10/09 08:06

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(1) India has removed tax exemptions for banks and government-designated institutions importing gold, silver, and platinum, imposing a 3% tax on these imports, thereby increasing the cost for major channels supplying to one of the world's largest precious metals markets. (2) Its revenue secretary, Arvind Shrivastava, stated on Thursday that the government did not extend the exemption from the Integrated Goods and Services Tax (IGST) for precious metals imported through banks beyond March 31 of this year. (3) This move places all gold and silver import channels on an equal footing in terms of tax treatment. (4) Shrivastava explained that the decision was made “to prevent tax policy from making one import channel more advantageous than another.” (5) India strictly controls gold imports, with most gold entering the country through authorized banks and designated institutions, while eligible jewelers may import through the India International Bullion Exchange. (6) The new tax regime will require these importers to allocate more operating funds.

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